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A Firm Is Evaluating a Proposal Which Has an Initial

Question 96

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of$15,000 per year for five years. The payback period of the project is


A) 1.5 years.
B) 2 years.
C) 4 years.
D) 3.3 years.

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