consider the following two investment projects: Investment B end of year cash flows Investment A end...
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consider the following two investment projects: Investment B end of year cash flows Investment A end Year of year cash flows 2001 +$200,000 +$100,000 2002 +400,000 +100,000 2003 +400,000 +100,000 2004 +400,000 +800,000 2005 +600,000 +1,000,000 Both projects require an investment of $1,000,000 at the end of 2000. The required rate of return for both projects is 10%. WHAT IS THE PAY BACK PERIOD FOR PROJECT A ? WRITE THA ANSWER AS FOLLOWS EXAMPLE 3Y4M2D Answer: consider the following two investment projects: Investment B end of year cash flows Investment A end Year of year cash flows 2001 +$200,000 +$100,000 2002 +400,000 +100,000 2003 +400,000 +100,000 2004 +400,000 +800,000 2005 +600,000 +1,000,000 Both projects require an investment of $1,000,000 at the end of 2000. The required rate of return for both projects is 10%. WHAT IS THE PAY BACK PERIOD FOR PROJECT A ? WRITE THA ANSWER AS FOLLOWS EXAMPLE 3Y4M2D Answer:
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SOLUTION Payback Period for the PROJECTA Year Cash Flows Cumulative net Cash flow 0 ... View the full answer
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