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The Short-Line Railroad is considering a $115,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1
The Short-Line Railroad is considering a $115,000 investment in either of two companies. The cash flows are as follows:
| Year | Electric Co. | Water Works | ||||
| 1 | $ | 95,000 | $ | 10,000 | ||
| 2 | 10,000 | 10,000 | ||||
| 3 | 10,000 | 95,000 | ||||
| 4 10 | 10,000 | 10,000 | ||||
|
| ||||||
a. Compute the payback period for both companies.
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
