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Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial
Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $27,000; project Helium requires an initial outlay of $32,000. Using the expected cash inflows given for each project in the following table, EEB, calculate each project's payback period. Which project meets Elysian's standards? Expected cash inflows Helium $7,000 $7,500 $9,000 $4,500 $5,500 $3,000 Year Hydrogen $7,000 $6,500 $7,000 $4,000 $2,500 $1,000 2 3 4
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