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The Silverside Company is considering investing in two alternative projects: Project 1 Project 2 Investment $400,000 $280,000 Useful life (years) 5 5 Estimated annual net

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The Silverside Company is considering investing in two alternative projects: Project 1 Project 2 Investment $400,000 $280,000 Useful life (years) 5 5 Estimated annual net cash inflows for useful life $90,000 $65,000 Residual value $25,000 $12,000 Depreciation method Straight-line Straight-line Required rate of return 10% 6% What is the payback period for Project 1? If payback is used to decide which project should they choose? O A. 4.17 years and choose Project 2 B. 4.44 years and choose Project 1 O C. 16 years and choose Project 1 OD. 4.44 years and choose Project 2

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