Consider the following data on a proposed investment:
-Investment required: R 160,000
-Annual cash inflows: R 40,000
-Life of the investment: 6 years
-Salvage value: 0
Cost of capital: 10%
Based on the above data, what is the payback period of the proposed investment project?
a) 0.25 years
b) 3 years
c) 4 years
d) 5 years
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