Question: please show how to solve problem in Excel Long-term investment decision, payback method Personal Finance Problem. Bill Williams has the opportunity to invest in project
Long-term investment decision, payback method Personal Finance Problem. Bill Williams has the opportunity to invest in project A tha costs $7,600 today and promises to pay $2,300,$2,600,$2,600,$2,100 and $1,700 over the next 5 years. Or, Bill can invest $7,600 in project B that promises to pay $1,400,$1,400,$1,400,$3,600 and $4,100 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A ? b. How long will it take for Bill to recoup his initial investment in project B? c. Using the payback period, which project should Bill choose? d. Do you see any problems with his choice
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