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Project C has the following cash flows. Years 0 1 5 2 $19,000 3 $22,000 4 $25,000 Cashflows -$75,000 $13,000 $26,000 i. Calculate the payback
Project C has the following cash flows. Years 0 1 5 2 $19,000 3 $22,000 4 $25,000 Cashflows -$75,000 $13,000 $26,000 i. Calculate the payback period in years for Project C. Round your answer to two decimal places. (2 marks) ii. Project D has a payback period of 3.35 years. The investor uses a threshold of 3.5 years for decision making. If Project C and Project D are mutually exclusive projects, which project should be accepted using the payback period method? Provide your reasons. (2 marks)
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