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Patterson Publishers is considering an investment that would require an initial cash outlay of $400,000 and would have no salvage value

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Patterson Publishers is considering an investment that would require an initial cash outlay of $400,000 and would have no salvage value. The project would generate annual cash inflows of $75,000. The firm's discount rate is 8 percent. How many years must the annual cash flows be generated for the project to generate a net present value of $0? Present value tables or a financial calculator are required.

1. between 5 and 6 years
2. between 6 and 7 years
3. between 7 and 8 years
4. between 8 and 9 years