Eagle Investments
Eagle Investments Is Considering Two Projects -Refer to Eagle Investments

Eagle Investments
Eagle Investments is considering two projects: $\begin{array}{lll}&\text { Project } \mathrm{A}& \text { Project B }\\\text { Initial investment } & \$ 150,000 & \$ 150,000 \\\text { Cash inflow Year 1 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 2 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 3 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 4 } & \$ 50,000 & \$ 60,000 \\\text { Cash inflow Year 5 } & \$ 50,000 & \$ 80,000\end{array}$
-Refer to Eagle Investments. What is the payback period for Project A?

A) 2.0 years
B) 2.5 years
C) 3.0 years
D) 3.5 years

Correct Answer:

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