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Jackson Company is deciding between four different possible investments. The relevant information is as follows: Initial Investment A B (90,000,000) (100,000,000) Year 1 Cash
Jackson Company is deciding between four different possible investments. The relevant information is as follows: Initial Investment A B (90,000,000) (100,000,000) Year 1 Cash 20,000,000 20,000,000 Flow Year 2 Cash 20,000,000 22,000,000 Flow Year 3 Cash 20,000,000 25,000,000 Flow Year 4 Cash 20,000,000 28,000,000 Flow Year 5 Cash 20,000,000 25,000,000 Flow Discount Rate 4.00% 5.00% Required . Using the payback method, how long will take each investment to get their money back? Round your answer to two decimals. Calculate the net present value for all four investments. Which investments should be made? Which one investment is the best? Support your answers. Payback in Years Net Present Value A B Which investments should be made? Which investment is the best one?
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