Porter Co. is analyzing two potential investments. Project XProject YCost of machine$68,000 $60,000 Net cash flow: Year 1 24,000 4,000 Year 2 24,000 26,000 Year 3 24,000 26,000 Year 4 0 20,000 The payback period in years for Project X is:
A. 2.83.
B. 3.50.
C. 3.83.
D. 2.00.
E. 4.00.
Answer: A
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