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Problem:

Compute the discounted payback period for a project with the following cash flows received uniformly within each year and with a required return of 8%:

Initial Outlay = $100

Cash Flows:

Year 1 = $40

Year 2 = $50

Year 3 = $60

  • 2.33 years
  • 3.00 years
  • 2.21 years
  • 2.10 years

Note: Please show how you came up with the solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162184

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