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Yankees is evaluating two projects Project Bench and Project Batting Cage. Project Bench has an initial investment of $750,000 and project Batting Cage has an
Yankees is evaluating two projects Project Bench and Project Batting Cage. Project Bench has an initial investment of $750,000 and project Batting Cage has an initial investment of $450,000. The cash flows for each project are provided below. The Yankees has a maximum acceptable payback period of 3 years. Calculate payback period and use it to indicate which project, if any, is acceptable.
Year 1 Year 2 Year 3 Year 4 Year 5 Project Bench $260,000 $260,000 $260,000 $260,000 $260,000 Project Batting Cage $90,000 $130,000 $150,000 $180,000 $240,000Step by Step Solution
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