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Question
Compare the two investment proposals below, using the payback period technique. The projected cost of each investment proposal is $100,000.
Project A Project B
Year (Cash flow) (Cash flow)
1 $25,000 $25,000
2 20,000 20,000
3 10,000 40,000
4 10,000 30,000
5 - 10,000
Answer
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