Considering the following two mutually exclusive projects:
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Considering the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0 -$740,000 -$80,000

1 95,000 60,000

2 180,000 25,000

3 250,000 10,000

4 535,000 2,000

Whichever project you choose, if any, you require a 7 percent return on your investment.

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1.If you apply the payback criterion, which investment will you choose?... View the full answer

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