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Vaughan Company is in the market for a new delivery vehicle. It has found 3 possible choices that each have a 6 year useful life

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Vaughan Company is in the market for a new delivery vehicle. It has found 3 possible choices that each have a 6 year useful life and information regarding each is listed below Project A Project B Project Initial Investment $40,000 $15,000 $27.000 Net Cash Inflow Year 1 O $20,000 $4,000 $5,000 Net Cash Intlow Year 2 $5,000 $8,000 $15.000 Not Cash Infow Year 3 $10,000 $15.000 $10.000 Net Cash Infow Year 4 $20,000 $2,000 $5,000 Net Cash Inflow Year 5 $10,000 $1,000 $8,000 Net Cash Inflow Year 6 $5,000 $13,000 $8,000 Vaughan only accepts projects that payback within the first 40% of their useful life. What is the payback period for Project A and is it acceptable? OA. 425 Years, No OB. 325 Years, No OC 3.75 Years, No OD 3.25 Years, Yes

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