Question: Using the payback method consider which of the two alternative expansion projects (A and B) would be the best investment. Each of the two projects

Using the payback method consider which of the two alternative expansion projects (A and B) would be the best investment. Each of the two projects involved an initial outlay of €600,000. Other details of the two alternatives are as follows:

Project	A	B
Net cash inflows:	€’000	€’000
Year 1	400	200
Year 2	200	300
Year 3	150	530

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