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

Question 28

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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