Business

Hope Morrison

22 June, 06:59

A company is considering two projects. Project I Project II Initial investment $120,000 $120,000 Cash inflow Year 1 $40,000 $20,000 Cash inflow Year 2 $40,000 $20,000 Cash inflow Year 3 $40,000 $32,000 Cash inflow Year 4 $40,000 $48,000 Cash inflow Year 5 $40,000 $50,000 What is the payback period for Project I?

a. 5 years

b. 2.5 years

c. 1 year

d. 3 years

e. 3.5 years

+2

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