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Can you please show the steps of how to solve (in excel preferred) please, thank you! Long-term investment decision, payback method Personal Finance Problem Bill
Can you please show the steps of how to solve (in excel preferred) please, thank you!
Long-term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $10.000 today and promises to pay $2,400, $2,300, $2,300, $2.200 and $1,700 over the next 5 years. Or, Bill can invest $10,000 in project B that promises to pay $1,200, $1,200, $1,200, $3,800 and $4,200 over the next 5 years. (Hint: For mixed stream, calculate cumulative cash inflows on year-to-year 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 choiceStep by Step Solution
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