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Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc is considering two mutually exclusive projects Each requires an initial investment of $100,000

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Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc is considering two mutually exclusive projects Each requires an initial investment of $100,000 John Shell, president of the company has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table ! a. Determine the payback period of each project b. Because they are mutually exclusive, Shell must choose one which should the company invest in? a. The payback penod orect swears (Round to two decimal places D The payback period of pe 6 Data Table b. Because they are mul (Select the best answer pmpany invest in? O Project A would be O Project B would be (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Cash inflows (CF) Year Project A Project B 1 $10,000 $40 000 $20,000 $30 000 $30,000 $20.000 $40,000 $10,000 $20,000 $20.000 UN Print Done Choosing between two projects with acceptable payback periods Shell Camping Gear Inc. is considering two mutually exclusive projects Each requires an initial investment of $100,000. John Shell, president of the company has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? a. The payback period of project Ais years. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places) b. Because they are mutually exclusive, Shell must choose one. Using the payback period, which project should the company invest in? (Select the best answer below) O Project A would be preferred over project because the larger cash flows are in the later years of the project. Project B would be preferred over project A because the larger cash flows are in the early years of the project

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