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A company is considering two capital investments. Each requires an initial investment of $ 1 5 , 0 0 0 and has a 4 year
A company is considering two capital investments. Each requires an initial investment of $ and has a year useful life. Investment A has expected cash inflows of $ each year for the years for total cash inflows of $ Investment B has the following expected cash flows: Year : $; Year : $; Year : $; Year : $; Total cash flows: $ Using the payback period as the evaluation method, which investment should be chosen by management?
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