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Payback period. Given the cash flow of two projects-A and B-in the following table, , and using the payback period decision model, which project(s) do
Payback period. Given the cash flow of two projects-A and B-in the following table, , and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? years (Round to one decimal place.) \begin{tabular}{|l|r|r|} \hline Cash Flow & A & B \\ \hline Cost & $10,000 & $105,000 \\ \hline Cash flow year 1 & $4,000 & $42,000 \\ \hline Cash flow year 2 & $4,000 & $31,500 \\ \hline Cash flow year 3 & $4,000 & $21,000 \\ \hline Cash flow year 4 & $4,000 & $10,500 \\ \hline Cash flow year 5 & $4,000 & $0 \\ \hline Cash flow year 6 & $4,000 & $0 \\ \hline \end{tabular}
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