Question
Consider the following project: Initial outlay = $20 million Year 1 expected cash flow = $7...
Consider the following project:
Initial outlay = $20 million
Year 1 expected cash flow = $7 million
Year 2 expected cash flow = $6 million
Year 3 expected cash flow = $5 million
Year 4 expected cash flow = $5 million
If the cash flows are received uniformly throughout the year, the payback period is closest to:
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