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6) Assume a $250,000 investment and the following cash flows for two products: Year Product X Product Y 1 $90,000 $50,000 2 90,000 80,000 3

6) Assume a $250,000 investment and the following cash flows for two products:

Year Product X Product Y

1 $90,000 $50,000

2 90,000 80,000

3 60,000 60,000

4 20,000 70,000

Which alternatives would you select under the payback method?

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