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Please answer this question with Financial Calculator or Formula A&B Enterprises is trying to select the best investment from two alternatives. Cash flows for each
Please answer this question with Financial Calculator or Formula
A&B Enterprises is trying to select the best investment from two alternatives. Cash flows for each alternative are:
Initial outlay $ 106,000 $ 106,000 Year
Investment A Investment B
1 $9,000 $56,000
2 $24,000 $51,000
3 $29,000 $35,000
4 $68,000 0
5 $69,000 0
For each of the investments, calculate the following (use a 10% discount rate):
(a) Payback period
(b) Internal rate of return
(c) For each method individually, which is the better investment?
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