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calculate cumulative cash inflows on a year - to - year basis until the initial investment is recovered. ) a . How long will it
calculate cumulative cash inflows on a yeartoyear basis until the initial investment is recovered.
a How long will it take for Bill to recoup his initial investment in project A
b How long will it take for Bill to recoup his initial investment in project B
c Using the payback period, which project should Bill choose?
d Do you see any problems with his choice?
a For Bill to recoup his initial investment in project A it will take years. Round to two decimal places.
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