Question 83
An investment that costs $120,000 is estimated to reduce cashoperating costs by $40,000 per year for 4 years. The required rateof return is 10 percent. Determine the payback period assuming aninflation rate of 8 percent on the operating costs saved.
| About 2.66 years |
| About 2.79 years |
| About 2.92 years |
| About 3 years |
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