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Consider the following two mutually exclusive projects: Year Cash Flow A Cash Flow B 0 -300 000 -40,000 1 20 000 19 000 2 50
Consider the following two mutually exclusive projects:
Year Cash Flow A Cash Flow B
0 -300 000 -40,000
1 20 000 19 000
2 50 000 12 000
3 50 000 18 000
4 390 000 10 500
If you apply the discounted payback criterion, which investment will you choose? Why? Show work.
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