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Mandell, Inc. is evaluating three possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial
Mandell, Inc. is evaluating three possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial capital investment Estimated useful life Estimated residual value Estimated annual net cash flow for each year Required rate of return Investment A $275,000 8 years $15,000 $56,000 12% Investment B $245,000 7 years $20,000 $37.000 12% Investment C $315,000 10 years $30,000 $65,000 12% Rank the projects as to order of preference if based on the best payback period. . O A. CBA O B. B, C, A OC. A, B, C OD. C, A, B
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