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Payback Period

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Assume a $50K investment and the following cash flows for two alternative. Which alternative would you select under the payback method?
Year investment A Investment B
1 $10,000 $20,000
2 11,000 25,000
3 13,000 15,000
4 16,000
5 30,000

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Solution Summary

The solution evaluates the cash flows under 2 alternatives using payback method.

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Assume a $50K investment and the following cash flows for two alternative. which alternative would you select under the payback method?
Year investment A Investment B
1 $10,000 $20,000
2 11,000 25,000
3 13,000 15,000
4 ...

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