Suppose that two projects each cost $$ 10,000$. The first project returns $$ 3,000$ a year for
Question:
Suppose that two projects each cost $\$ 10,000$. The first project returns $\$ 3,000$ a year for 7 years. The second project returns $\$ 5,000$ a year for two years. Which has the better payback period? Is that the better project to invest in?
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Project 1 costs 10000 and returns 3000 per year for 7 years So it returns 3000 7 21000 total Paybac...View the full answer
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Related Book For 
Finance And Accounting For Nonfinancial Managers
ISBN: 9780808046905
5th Edition
Authors: Steven A. Finkler
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