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Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below: Year Investment A Investment B 0 $(5,000) $(6,000) 1
Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below:
Year Investment A Investment B
0 $(5,000) $(6,000)
1 2,000 3,000
2 2,000 2,000
3 2,000 2,000
4 2,000 1,000
Considering the unequal investments, which of the following techniques would be most appropriate for choosing between Investment A and Investment B?
A. Payback technique
B. Present value
C. Net present value technique
D.None of these answers is correct
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