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Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of R100,000. John Shell, CEO of the company, has set

image text in transcribed Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of R100,000. John Shell, CEO of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are as follows: a) Determine the payback period of each project. b) Because they are mutually exclusive, Shell must choose one. Which should the company invest in? c) Explain why one of the projects is a better choice than the other

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