What is the payback period in years

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Question - An investment project is expected to yield $10,000 in annual revenues, has $2,000 in fixed costs per year, and requires an initial investment of $5,000. Given a cost of goods sold of 60 percent of sales, what is the payback period in years?

a. 2.50

b. 2.00

c. 5.00

d. 1.25

Reference no: EM133111313

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