Question: 8. The simplest and arguably the most commonly used method of investment appraisal is a technique known as payback. The following table represents the cash

8. 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. Year Project A (E) Project B (E) (today) 1 2 3 4 8 Total Payback (100,000) 50,000 40,000 30,000 20,000 20,000 60.000 3 years (100,000) 20.000 30,000 30,000 40,000 50,000 70,000 4 years Which project would you invest in and why

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