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Question
Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in years 2 through 4, and $100,000 in year 5. What is the investment's discounted payback period if the required rate of return is 10%?A) 3.33 years
B) 3.16 years
C) 2.67 years
D) 2.33 years
Answer
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