14.3 Two projects, G and H, cost 20,000 and 30,000 respectively. Project G is estimated to produce...

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14.3 Two projects, G and H, cost £20,000 and £30,000 respectively. Project G is estimated to produce annual cash flows of £4,000 for 10 years whereas project H is estimated to produce annual cash flows of £5,000 for eight years.

Which project would be chosen, using the payback method?

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