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Consider an investment with an initial cost of $20,000 and is expected to last for 5 years.The expected cash flow in years 1 and 2 are $5,000,in years 3 and 4 are $5,500 and in year 5 is $1,000.The total cash inflow is expected to be $22,000 or an average of $4,400 per year.Compute the payback period in years.
High Blood Pressure
A condition where the long-term force of the blood against artery walls is high enough that it may eventually cause health problems, such as heart disease.
American Medical Association
A professional association of physicians in the United States dedicated to promoting the art and science of medicine and the betterment of public health.
Binomially Distributed
A probability distribution of a variable that represents the number of successes in a fixed number of independent trials, with only two possible outcomes.
Random Variable
A random variable is a variable whose values are outcomes of a random phenomenon.
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