Given the cash flows of the four projects, A, B, C, and D, and using the payback
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Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Cash Flow Cost Cash flow yer 4,0002,000 $10,000 40,000 Cash flow year 2 4,000 8,000 $15,000 30,000 Cash flow year 3 4,000 $14,000 $20,000 20,000 Cash flow year 4 4,000 $20,000 $20,000 10,000 Cash flow year 5 4,000 $26,000 $15,000 $ 0 Cash flow year 6 4,000 32,000 $10,000 0 $10,000$25,000 $45,000 $100,000
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Project A Year One 10000 4000 6000 left to recover Year Two 6000 4000 2000 left to recover Year Thre...View the full answer
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