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Assume you are a manager. Describe and explain three ways that you can determine making a capital investment. Assume that the initial investment is $

Assume you are a manager. Describe and explain three ways that you can determine making a capital investment. Assume that the initial investment is $1.5mn, and that the investment will pay $600k for each of the first 2 years, and $400k the next 5. Salvage value is zero at that point. Using the NPV, would you make this investment? Using the payback method, with a 3 year payback period, when would the investment have paid for itself?

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