Question: You are considering a new project that requires an initial investment of $30,000 at time 0, and will provide you annual cash flows of $10,000

You are considering a new project that requires an initial investment of $30,000 at time 0, and will provide you annual cash flows of $10,000 at the end of each year (you will get the first cash flow at the end of year 1). Assuming that the required return for a project of this risk level is 10%, what is the discounted payback period for this project?

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