Question: 1. The simplest and arguably the most commonly used method of investment appraisal is a technique known as payback. The following table represents the cash

1. The simplest and arguably the most commonly used method of investment appraisal is a technique known as payback. The following table represents the cash flows from two potential projects. Each project requires an initial investment of 100,000 and delivers a cash benefit over the following five years only.

Which project would you invest in and why?

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