What is the investments discounted payback period

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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 discounted payback period if the required rate of return is 12%?

Answer

3.39 years
3.33 years
3.16 years
3.25 years

 

Reference no: EM13265372

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