Question: 1. Study the table below. What is the payback period for Project X? a. CAPITAL EXPENDITURE DATA FOR PROJECT X Initial Investment Year 1 R1

1. Study the table below. What is the payback

1. Study the table below. What is the payback period for Project X? a. CAPITAL EXPENDITURE DATA FOR PROJECT X Initial Investment Year 1 R1 000,00 Expected Cash Inflows Year 2 Year 3 Year 4 R2 000,00 R2 000,00 R5 000,00 Year 5 R2 000,00 R10 000,00 b. Now assume the company wants to select between Project X and Project Y, of which the latter has a payback period of three years and 10 months. Which project should be selected? The initial investment remains the same for both projects. Explain

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