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(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash inflows (CF) Year 1 2
(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash inflows (CF) Year 1 2 3 4 50 Project A $10,000 $20,000 $30,000 $40,000 $30,000 Project B $40,000 $30,000 $20,000 $10,000 $30,000 Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $100,000. John Shell, president of the company, has set a maximum payback period of 4 years. The cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Which project is acceptable based on payback period
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