Question: consider the following two investmets: project x project y initial investment $100,000 $100,000 year1 cash inflow $60,000 $60,000 year2 cash inflow $40,000 $35,000 year3 cash
consider the following two investmets:
| project x | project y | |
| initial investment | $100,000 | $100,000 |
| year1 cash inflow | $60,000 | $60,000 |
| year2 cash inflow | $40,000 | $35,000 |
| year3 cash inflow | 0 | $25,000 |
which project has the shortest payback period?
a. project a, b.projectb c.cannot determined
i want to know the way i solve this problem.
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