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Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $140,000.
Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $140,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? 0 Data Table (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Year Cash inflows (CF) Project A Project B $20,000 $50,000 $30,000 $40,000 $40,000 $30,000 $50,000 $20,000 $40,000 $40,000
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