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QUESTION 2 Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $25,000 $40,000 2. 30.000 40,000
QUESTION 2 Assume a $90,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $25,000 $40,000 2. 30.000 40,000 28,000 25,000 3 4 19.000 5 25,000 a Calculate the payback for investment A and B. b. If the inflow in the fifth year for Investment A was $25,000,000 instead of $25,000, would your answer change under the payback method? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial 10pt Ix iii V MIT ABC > Tc 12 - x X g B ==== + | (:) E e #
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