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What is payback period for investment for magi corporation

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Reference no: EM132912806

Problem 1: Magi Corporation is considering an investment that will cost JD115,000 and have a useful life of 4 years. During the first 2 years, the net cash flows are JD40,000 per year and for the last two years they are JD20,000 per year. What is the payback period for this investment?

Choose one of the options
a. 3.25 years
b. Cannot be determined from this information
c. 3.50 years
d. 3.75 year

Reference no: EM132912806

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