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What is the payback period for the cash flows

01/10/2021 Client: muhammad11 Deadline: 2 Day

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%.

Year Cash Flow
0 $ (12,000)
1 $ 1,000
2 $ 2,000
3 $ 3,000
4 $ 4,000
5 $ 5,000
6 $ 6,000
2.25 years

3.25 years

3.85 years

4.40 years

None of these are correct.

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