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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