Question
Consider the following two investments: Project X Project Y Initial investment $100,000 $100,000 Year 1 cash inflow $50,000 $80,000 Year 2 cash inflow $40,000 $28,000
Consider the following two investments:
Project X Project Y
Initial investment $100,000 $100,000
Year 1 cash inflow $50,000 $80,000
Year 2 cash inflow $40,000 $28,000
Year 3 cash inflow $30,000 $18,000
Ignore time value of money, which project has the shortest payback period?
a. project Y b. project x
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Management Audits
Authors: Allan J. Sayle
3rd Edition
0951173901, 978-0951173909
