An Investment with an Initial Cost of £15,000 Produces Cash

question 21

Multiple Choice

An investment with an initial cost of £15,000 produces cash flows of £5,000 annually for 5 years.If the cash flow is evenly spread out over the year and the firm can borrow at 10%, the discounted
Payback period is _____ years.

• A)3
• B)3.2
• C)3.75
• D)4
• E)5

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Other Cultures

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Tailor

A person who makes, repairs, or alters clothing professionally, especially suits and men's clothing.

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Rude

Displaying or characterized by a lack of manners or consideration for others.