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Kate is considering an investment in a retail shopping mall. The initial investment is $630,000. She expects to receive cash income of $90,000 a year.
Kate is considering an investment in a retail shopping mall. The initial investment is $630,000. She expects to receive cash income of $90,000 a year. What is the payback period?
a.2 years
b.12 years
c.7 years
d.5 years
e.15 years
Cooper Industries is considering a project that would require an initial investment of $101,000. The project would result in cost savings of $62,000 in year 1 and $70,000 in year two. The internal rate of return is
a.between 16% and 17%.
b.under 15%.
c.between 18% and 20%.
d.None of these choices are correct.
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