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An Investment with an Initial Cost of $14,000 Produces Cash

Question 98

Multiple Choice

An investment with an initial cost of $14,000 produces cash flows of $4,000 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) 2.5
B) 2.68
C) 4.53
D) 4.87
E) Never

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