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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...................2,000...............3,000..... 2..................2,000.................2,000.... 3.................2,000.................2,000..... 4.................2,000.................1,000..... Considering

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. Present value index

B. None of these are correct

C. Payback technique

D. Net present value technique

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