Question: EKG Berhad is considering a new project that will require an initial cash investment of RM398,000. The project will produce no cash flows for the

EKG Berhad is considering a new project that will require an initial cash investment of

RM398,000. The project will produce no cash flows for the first two years. The

projected cash flows for year 3 through 7 are RM79,000, RM88,000, RM102,000,

RM140,000, and RM160,000 respectively. How long will it take the firm to recover its

initial investment in this project?

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