Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 2 3 Cash flows -$1,100 $500 $500 Group of answer choices 2.50 years 2.20 years 2.70 years 2.07 years 1.86 years 1 $500

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter26: Real Options
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Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback?
Year
0
3
Cash flows
-$1,100
$500
Group of answer choices
2.50 years
2.20 years
2.70 years
2.07 years
1.86 years
1
$500
2
$500
Transcribed Image Text:Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 3 Cash flows -$1,100 $500 Group of answer choices 2.50 years 2.20 years 2.70 years 2.07 years 1.86 years 1 $500 2 $500
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