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Assume you have $20,000 to invest and must choose between two investments. Expected net cashflows over the 6 year investment timeframe are shown in the

Assume you have $20,000 to invest and must choose between two investments. Expected net cashflows over the 6 year investment timeframe are shown in the table below. Assume the salvage value for the investments is $0 a. Analyze Investments A and B using the payback period, simple rate of return, net present value and internal rate of return methods using a 4 percent discount rate. Please show your work to receive full marks.

Year

Investment A

0

(20,000)

1

5,000

2

5,000

3

5,000

4

5,000

5

5,000

6

5,000

Investment B

(20,000)

1,000

4,000

4,000

4,000

8,000

10,500

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