Consider a proposed project that has the following costs and benefits.  Using linear interpolation, what is the project's simple or conventional payback period? Year Costs Benefits 0 $4,000   1 2,000   2   $1,500 3   1,500 4   1,500 5   2,300 6   2,300   A. 6.58 years   B. 4.65 years   C. 3.98 years   D. 5.41 years

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Consider a proposed project that has the following costs and benefits.  Using linear interpolation, what is the project's simple or conventional payback period?


Year

Costs

Benefits

0

$4,000

 

1

2,000

 

2

 

$1,500

3

 

1,500

4

 

1,500

5

 

2,300

6

 

2,300

  A.

6.58 years

  B.

4.65 years

  C.

3.98 years

  D.

5.41 years

 

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