The investment will produce cash flows of 250000 in year 1

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Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in years 2 through 4, and $100,000 in year 5. What is the investment's payback period?

i) 5.55 years
ii) 1.01 years
iii) 2.67 years
iv) 4.38 years

Reference no: EM13570829

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