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1.     Stenson, Inc., imposes a payback cutoff of three years for its international investment projects.

Assume the company has the following two projects available. Year 0 Cash flow A -63,000 Cashflow B -108,000  Year 1 Cash Flow A 26,000  Cashflow B 28,000     Year 2 Cash Flow A 33,800  Cash Flow B 33,000   Year 3 Cash Flow A 28,000   Cashflow B 26,000  Year 4  Cash Flow A 14,000  Cash Flow B232,000. What is the payback period for each project? Which, if either, project should the company accept? Please use excel and explain conclusion. 

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Payback period of project A is 2.11 Years... View the full answer

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