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Problem:

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.

Required:

Question: What is the investment's discounted payback period if the required rate of return is 10%?

3.33 years
3.16 years
2.67 years
2.33 years

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

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148499

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