Assume a $90,000 investment and the following cash flows for two alternatives. a. Calculate the payback for

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Assume a $90,000 investment and the following cash flows for two alternatives.

a. Calculate the payback for investment A and B.
b. If the inflow in the fifth year for Investment A was $25,000,000 instead of $25,000, would your answer change under the paybackmethod?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 06:54 AM

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Assume a $90,000 investment and the following cash flows for two alternatives. a. Calculate the payback for

Question:

Year Investment A $25,000 30,000 25,000 19,000 25,000 Investment B $40,000 40,000 28,000

Step by Step Answer:

a Payback for Investment A Payback for Investment B 90000 25...View the full answer

Foundations of Financial Management

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