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HP Ltd. wants to determine which of the two project alternatives is the more attractive investment opportunity. Using a payback period approach determines which project

HP Ltd. wants to determine which of the two project alternatives is the more attractive investment opportunity. Using a payback period approach determines which project HP Ltd. should invest in?

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TABLE 3.5 Initial Outlay and Projected Revenues for Two Project Options Project A Project B Revenues Outlays Revenues Outlays Year O $500,000 $500,000 Year 1 $ 50,000 $ 75,000 Year 2 150,000 100,000 Year 3 350,000 150,000 Year 4 600,000 150,000 Year 5 500,000 900,000

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