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Carlota is hoping that an investment of $30,000 will provide additional revenue to the store of $18,000 per year for 3 years. Her partner in
Carlota is hoping that an investment of $30,000 will provide additional revenue to the store of $18,000 per year for 3 years. Her partner in crime, Kyle, is confident that a larger investment of $40,000 will be required to bring in a steady flow of $23,000 in new revenue per year for 3 years. Determine the discounted payback period for each investment (using before-tax cash flows). The companys required rate of return is 9%. Whose investment appears to better use
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