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Assume a $65.000 Investment and the following cash flows for two alternatives. Year 1 2 3 Investment A $ 20,000 25,000 18,888 25,000 25,000 Investment
Assume a $65.000 Investment and the following cash flows for two alternatives. Year 1 2 3 Investment A $ 20,000 25,000 18,888 25,000 25,000 Investment B $ 35,eee 15,000 25,000 a. Calculate the payback for Investment A and B. (Round your answers to 2 decimal places.) Investment A Investment B years years b. Which investment would you select under the payback method? O Investment A Investment B c. If the inflow in the fifth year for Investment A was $25.000.000 instead of $25,000, would your answer change under the payback method? Yes NO
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