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QUESTION 10 Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these
QUESTION 10
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Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.
Calculate payback for proposal 1
Years
Proposal 1- $
Proposal 2- $
0
(40,000)
(64000)
1
18000
10000
2
24000
32000
3
32000
19000
4
11000
25000
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