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If Cash Flows Are Not Equal Each Year,the Payback Period

Question 18

Multiple Choice

If cash flows are not equal each year,the payback period:


A) cannot be calculated.
B) is calculated by dividing the initial investment by the average cash flows.
C) is calculated by subtracting each year's cash flows from the initial investment until zero is reached.
D) is calculated by dividing the total years in the project by two.

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