A company is evaluating an investment proposal using the payback method.Cash inflows are expected to be $16 000 in year 1,$12 000 in year 2 and $8000 in year 3.The initial investment required is $32 000.Assuming even cash inflows within each year the payback period is:
A) 2 years
B) 2.25 years
C) 2.5 years
D) 2.6 years
Correct Answer:
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