Question: A company is considering two projects. Project I Project II Initial investment $200,000 $200,000 Cash inflow Year 1 50,000 60,000 Cash inflow Year 2 50,000

A company is considering two projects.

Project I Project II
Initial investment $200,000 $200,000
Cash inflow Year 1 50,000 60,000
Cash inflow Year 2 50,000 60,000
Cash inflow Year 3 50,000 80,000
Cash inflow Year 4 50,000 10,000
Cash inflow Year 5 50,000 50,000

What is the payback period for Project II?

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