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Assume a $80,000 investment and the following cash flows for two alternatives Investment B Year Investment A $ 20,000 30,000 22,500 15,000 20,000 $ 45,000
Assume a $80,000 investment and the following cash flows for two alternatives Investment B Year Investment A $ 20,000 30,000 22,500 15,000 20,000 $ 45,000 25,000 25,000 3 4 a. Calculate the payback for investment A and B. (Round your answers to 2 decimal places.) Investment A yea Investment B yea b. Which investment would you select under the payback method? Investment A OInvestment B c. If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? O Yes 0
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