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Assume a $100,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $30,000 $40,000 2 50,000 30,000 3 20,000

Assume a $100,000 investment and the following cash flows for two alternatives.

Year Investment A Investment B

1 $30,000 $40,000

2 50,000 30,000

3 20,000 15,000

4 60,000 15,000

5 - 50,000

Which of the two alternatives would you select under the payback methot?

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