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Assume a $90,000 investment and the following cash flows for two alternatives: Year Investment A Investment B 1 $25,000 $40,000 2 30,000 40,000 3 25,000
Assume a $90,000 investment and the following cash flows for two alternatives: Year Investment A Investment B 1 $25,000 $40,000 2 30,000 40,000 3 25,000 28,000 4 19,000 __Calculate the payback for Investments A and B. 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?
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