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The cash flows of two mutually exclusive alternatives are given below. Which alternative should be selected based on the non-return payback period analysis? A B
The cash flows of two mutually exclusive alternatives are given below. Which alternative should be selected based on the non-return payback period analysis? A B Alternatives First cost, $ NCF, $ per year 20,000 2,000 (year 1-3) 3,500 (year 4-10) 1,500 26,000 2,500 (year 1-4) 4,000 (year 5-10) 2000 S, $ Life, year 10 10 Alternative B with a payback period of 7 years Alternative B with a payback period of 8 years Alternative A with a payback period of 7 years O Alternative A with a payback period of 8 years
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