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Please answer A , B , C and D ongterm investment decision, payback method Personal Finance Pr m Ba Wiliams has thopportunty to i vest
Please answer A , B , C and D
ongterm investment decision, payback method Personal Finance Pr m Ba Wiliams has thopportunty to i vest n pre ect A that costs s sooday and promises to pay annual cash f ws of 2,500, $2500, $2,100 and $1,700 over the next 5 years. Or, Bl can invest $8,500 in project B that promises to pay annual cash fows of $1,500, $1,500, $1,500, $3,700 and $4,100 over the next 5 years. (Hint For xed stream cath inlows, cakulale cumulative cash infows on a year to-year basit unil the initial investmend is ecovered How long will it take for Bill to reooup his initial investment in project A? . How long wil t take for Bil to recoup his initial investment in peojnot 8 Uing he payback peniod, which proet hould Bil choose? . Do you seo any probiems with his choice? . For Bil to recoup his intial mosnent in proioctA,itwiltake. ?yors (Reurd to two decinal places.) Step by Step Solution
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