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    10. (TCO B, F) Sewart Associates is considering a project that has the following cash flow data. What is the project's payback?

    Year Cash flow

    0 ($1,000)

    1 $300

    2 $310

    3 $320

    4 $330

    5 $340

    2.11 years
    2.34 years
    2.60 years
    2.89 years
    3.21 years

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    Solution Preview

    Payback is the time taken to recover the initial investment. The initial investment is $1,000. In ...

    Solution Summary

    The solution explains the calculation of payback periods.

    $2.49

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