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3. Assume a $50,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $10,000 $20,000 2 11,000 25,000 3

3. Assume a $50,000 investment and the following cash flows for two alternatives.

Year Investment A Investment B

1 $10,000 $20,000

2 11,000 25,000

3 13,000 15,000

4 16,000

5 30,000

Which alternative would you select under the payback method?

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