Question: A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $10,000 per year for five years. The

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $10,000 per year for five years. The payback period of the project is

a. 5 years.

b. 3.3 years.

c. 2.5 years.

d. 1.5 years.

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