Chris has been offered the chance to invest $120,000 in a partnership, which is expected to return $25,000 per year. If Chris is in the 30% tax bracket and limits investments to those with a payback of six years, should Chris invest?
-Yes, because the payback period is 4.80 years.
-No, because the payback period is 6.86 years.
-Yes, because the payback period is 3.36 years. 
Homework Answers
![Payback = investment : annual cash flows 6.86 YEARS [ 120000 = 17500 ]](http://img.homeworklib.com/questions/c40df640-2915-11eb-89fa-1517aede8fda.png?x-oss-process=image/resize,w_560)
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