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David Machineries is faced with two independent investment opportunities. The company has an investment policy which requires acceptable projects to recover all costs within 3
David Machineries is faced with two independent investment opportunities. The company has an investment policy which requires acceptable projects to recover all costs within 3 years. The company uses the payback method to assess potential projects and utilizes a discount rate of 10 percent. The cash flows for the two projects are:
Which investment project should the company invest in?
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