Math Problem Statement
An investment project costs $100,000. It is expected to have an annual net cash flow of $25,000 for five years. What is the project’s payback period (in year)?
(provide your answer in the whole number)
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Investment Analysis
Formulas
Payback Period formula: Payback Period = Initial Investment / Annual Net Cash Flow
Theorems

Suitable Grade Level
Professional
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