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A Project Has an Initial Cost of $10,600 and Produces

Question 40

Multiple Choice

A project has an initial cost of $10,600 and produces cash inflows of $3,700,$4,900,and $2,500 for Years 1 to 3,respectively.What is the discounted payback period if the required rate of return is 7.5 percent?


A) 2.65 years
B) 2.78 years
C) 2.94 years
D) 2.88 years
E) Never

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