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A Project Costs $475 and Has Cash Flows of $100

Question 413

Multiple Choice

A project costs $475 and has cash flows of $100 for the first three years and $75 in each of the project's last five years. If the discount rate is 10%, what is the discounted payback period?


A) The project never pays back on a discounted basis
B) 5 years
C) 6 years
D) 7 years
E) 8 years

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