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nitial investment - 10000 Expected cash inflows year 1 - 1000 year 2 - 2000 year 3 - 2000 year 4 - 5000 year 5-

nitial investment - 10000

Expected cash inflows

year 1 - 1000

year 2 - 2000

year 3 - 2000

year 4 - 5000

year 5- 2000

BASED ON THE INFO ABOVE What is the payback period for Project X AND,

assume the company wants to select between Project X and Project Y, of which the latter has a payback period of three years and 10 months. Which project should be selected? The initial investment remains the same for both projects. Explain.

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