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Only one answer is correct, and that is one of the options.

The National City Sharks team is considering an expansion project that requires an initial outlay of $23,937,500 and has the projected cash flow listed below for years 1-10. How long will it take for The National City Sharks' project to generate enough cash to pay for itself?

Year 1

$3.75 Million

Year 2

$4.00 Million

Year 3

$4.50 Million

Year 4

$4.75 Million

Year 5

$5.50 Million

Year 6

$5.75 Million

Year 7

$6.00 Million

Year 8

$6.15 Million

Year 9

$6.20 Million

Year 10

$8.10 Million

A. 6.00 years

B. 5.75 years

C. 5.50 years

D. 5.25 years

E. 5.00 years