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As a financial manager you are to evaluate two independent projects X and Y for your company. The cashflows of each project are given below.

As a financial manager you are to evaluate two independent projects X and Y for your company. The cashflows of each project are given below.

Year

Project X

Project Y

0

(80000)

(100000)

1

60000

30000

2

30000

30000

3

30000

30000

4

20000

30000

5

10000

30000

Calculate the payback period for both projects.

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