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Payback period. Given the cash flow of four projectsA, B, C, and Dand using the payback period decision model, which projects do you accept and
Payback period. Given the cash flow of four projectsA, B, C, and Dand using the payback period decision model, which projects do you accept and which projects do you reject if you have a three-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. Cash Flow Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 A $10,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 B. $25,000 $2,000 $8,000 $14,000 $20,000 $26,000 $32,000 $45,000 $10,000 $15,000 $20,000 $20,000 $15,000 $10,000 D $100,000 $40,000 $30,000 $20,000 $10,000 $0 $0 What is the payback period for project A? .50 years (Round to two decimal places.) With a three-year cutoff period for recapturing the initial cash outflow, project A would be accepted . (Select from the drop-down menu.) What is the payback period for project B? years (Round to two decimal places.)
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