Question: QUESTION ONE [25] 1.1 Consider two projects whose cash inflows are not even. Assume that the project costs R200 000. The net cash inflow for
QUESTION ONE [25] 1.1 Consider two projects whose cash inflows are not even. Assume that the project costs R200 000. The net cash inflow for each year is as foLLOWS:
| YEAR | PROJECT B | PROJECT C |
| 1 | 20 000 | 100 000 |
| 2 | 40 000 | 80 000 |
| 3 | 60 000 | 60 000 |
| 4 | 80 000 | 20 000 |
| 5 | 100 000 | - |
| 6 | 100 200 | - |
required: 1.1.1 Calculate the payback period of each project and recommend the project that should be selected based on the payback period.
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