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Zeta Gaming Company has an opportunity to purchase a video game phone app that will cost $228,000. Zeta expects the demand for the app to
Zeta Gaming Company has an opportunity to purchase a video game phone app that will cost $228,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash inflows are as follows: Year 1 $86,000 Year 2 $76,000 Year 3 $66,000 Year 4 $56,000 Year 5 $46,000 If Zeta uses the cumulative approach the payback period for this investment is Multiple Choice 1.54 years. 3.00 years. 3.88 years
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