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An Investment with an Initial Cost of £15,000 Produces Cash

Question 21

Multiple Choice

An investment with an initial cost of £15,000 produces cash flows of £5,000 annually for 5 years.If the cash flow is evenly spread out over the year and the firm can borrow at 10%, the discounted
Payback period is _____ years.


A) 3
B) 3.2
C) 3.75
D) 4
E) 5

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