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The Post Company is considering investing in two alternative projects: Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation
The Post Company is considering investing in two alternative projects: Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return What is the payback period for Project 1? Project 1 $600,000 9 $110,000 $24,000 Straight-line 15% Project 2 $230,000 5 $55,000 $14,000 Straight - line 7% O A. 5.45 years POB. 9.38 years OC. 4.18 years OD. 25.00 years
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