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Business, 16.01.2020 06:31 Prettygirlbuggy

Acompany is considering two capital investments. each requires an initial investment of $15,000 and has a 4 year useful life. investment a has expected cash inflows of $5,000 each year for the 4 years for total cash inflows of $20,000. investment b has the following expected cash flows: year 1: $8,000; year 2: $6,000; year 3: $4,000; year 4: $2,000; total cash flows: $20,000. calculate the payback period for investment a.

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