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Diamond Ltd has a payback period limit of three years and is considering investing in one of the following projects. Both projects require an initial investment of $800,000. Cash inflows accrue evenly throughout the year.
The company's cost of capital is 10%. What is the discounted payback period of Project Alpha? A. Between 5 and 6 years B. Between 3 and 4 years C. Between 4 and 5 years D. Between 1 and 2 years |