If a proposed investment's payback period is 3 years, its initial cost is $50,000, and its useful life is 10 years, which of the following must be true?
A) Cash inflows over the investment's useful life total $150,000.
B) Cash inflows over the first three years total $50,000.
C) The accounting profits generated by the investment over the first three years total $50,000.
D) None of the above
B
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