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A Company Is Considering Two Projects -Refer to the Figure

question 125

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A company is considering two projects.
 Froject I  Froject II  Initial investment $60,000$60,000 Cash inflow Year 1 $30,000$15,000 Cash inflow Year 2 $30,000$15,000 Cash inflow Year 3 $30,000$30,000 Cash inflow Year 4 $30,000$70,000 Cash inflow Year 5 $30,000$70,000\begin{array}{lrr} & \text { Froject I } & \text { Froject II } \\\text { Initial investment } & \$ 60,000 & \$ 60,000 \\\text { Cash inflow Year 1 } & \$ 30,000 & \$ 15,000 \\\text { Cash inflow Year 2 } & \$ 30,000 & \$ 15,000 \\\text { Cash inflow Year 3 } & \$ 30,000 & \$ 30,000 \\\text { Cash inflow Year 4 } & \$ 30,000 & \$ 70,000 \\\text { Cash inflow Year 5 } & \$ 30,000 & \$ 70,000\end{array}
-Refer to the Figure.What is the payback period for Project II?

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