The Short-Line Railroad is considering a $100,000 investment in either of two companies. The cash flows are
Question:
a. Using the payback method, what decision should be made?
b. Explain why the answer in part a can be misleading.
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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