An Investment Project Requires an Initial Investment of $100,000

question 81

Multiple Choice

An investment project requires an initial investment of $100,000. The project is expected to generate net cash inflows of $28,000 per year for the next five years. These cash inflows occur evenly throughout the year. Assuming a 12% discount rate, the project's payback period is (Ignore income taxes.) :

• A) 0.28 years
• B) 3.36 years
• C) 3.57 years
• D) 1.40 years

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