21) (4 pts) Two proposed investments (A and B) have the following cash flows. On the...
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21) (4 pts) Two proposed investments (A and B) have the following cash flows. On the basis of Payback Period, which investment would you choose? Explain any concerns you should have with relying on the payback period. YA B R 17 1 4 *** 0 -10 -10 2 2 4 2 3 4 2 4 4 20 Payback Period CHOICE? (Check a box) A B 21) (4 pts) Two proposed investments (A and B) have the following cash flows. On the basis of Payback Period, which investment would you choose? Explain any concerns you should have with relying on the payback period. YA B R 17 1 4 *** 0 -10 -10 2 2 4 2 3 4 2 4 4 20 Payback Period CHOICE? (Check a box) A B
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To calculate the payback period for each investment we sum the cash flows until the total becomes po... View the full answer
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