Compute payback period for a project with cash flows
Compute the payback period for a project with the following cash flows, if the company's discount rate is 12%.
Initial outlay = $450
Cash flows:Year 1 = $325Year 2 = $65Year 3 = $100
A. 3.43 years
B. 3.17 years
C. 2.88 years
D. 2.6 years
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