Multiple Choice
Joe is considering setting up a business selling free-range chickens.He estimates his establishment costs will be $600,000 and his net cash flows for the first five years will be $100,000 in year 1,$200,000 in year 2,stabilising at $250,000 in year 3.The payback period for the investment is:
A) 3 years.
B) 3.2 years.
C) 5 years.
D) 3.8 years.
Correct Answer:
Verified
Correct Answer:
Verified
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