An Investment Project Has an Initial Cost of $260 and Cash

question 85

Multiple Choice

An investment project has an initial cost of $260 and cash flows $75,$105,$100,and $50 for Years 1 to 4,respectively.The cost of capital is 12 percent.What is the discounted payback period?

• A)3.76 years
• B)Never
• C)3.42 years
• D)3.68 years
• E)3.92 years

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