Question: Hay Limited is adding a new assembly line at a cost of 8.5 million dollars. The company expects the project to generate free cash flows

Hay Limited is adding a new assembly line at a cost of 8.5 million dollars. The company expects the project to generate free cash flows of 2.2 million, 3.2 million, 4.2 million, and 5.2 million over the next four years. Its cost of capital is 16%. What is the payback period for this project?
O a. 3.60
O b. 2.60
O c. 2
O d. 2.74

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