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Consider two projects whose cash inflows are not even. Assume that the project costs R205 000. The net cash inflows for each year are
Consider two projects whose cash inflows are not even. Assume that the project costs R205 000. The net cash inflows for each year are as follows: Year 1 period. 2 3 4 5 6 Project X R30 000,00 R35 000,00 R65 000,00 R55 000,00 R75 000,00 R95 000,00 Project Y R75 000,00 R95 000,00 R60 000,00 R26 000,00 REQUIRED Calculate the payback period of each project and recommend the project that should be selected based on the payback (6 Marks)
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To calculate the payback period for each project we need to determine how long it takes for the cumu...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
