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A company has two projects to choose from with the following annual after-tax cash flows: Project X Investment (today)$800,000 Investment (Year 1) $500,000 Years 25$750,000
A company has two projects to choose from with the following annual after-tax cash flows:
Project X
Investment (today)$800,000
Investment (Year 1) $500,000
Years 25$750,000
Project Y
Investment (today)$1,800,000
Years 15$950,000
The firm's cost of capital is 12 percent.
Compute both projects' payback period and discounted payback period.
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