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Jennifer is hoping that an investment of $29,800 will provide additional revenue to the store of $17,900 per year for 3 years. Her partner
Jennifer is hoping that an investment of $29,800 will provide additional revenue to the store of $17,900 per year for 3 years. Her partner in crime, David, is confident that a larger investment of $39,700 will be required to bring in a steady flow of $22,800 in new revenue per year for 3 years. Determine the discounted payback period for each investment (using before-tax cash flows). The company's required rate of return is 9%. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 15.25.) Click here to view the factor table Discounted payback period Jennifer years Whose investment appears to better use the company's resources? David years
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