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A Project with a Projected 6-Year Life Would Cost $100,000

Question 1

Multiple Choice

A project with a projected 6-year life would cost $100,000. Its annual cash flows would be $40,000, while its annual income flows would be $30,000. The payback period would be how many years?


A) 2.5
B) 3.33
C) 4
D) 6

Correct Answer:

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