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Business, 05.05.2020 00:36 nakiyapulley7466

Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below:

Year Investment A Investment B
0 $(4,700 ) $(5,550 )
1 1,880 2,820
2 1,880 1,880
3 1,880 1,880
4 1,880 940

Considering the unequal investments, which of the following techniques would be most appropriate for choosing between Investment A and Investment B?

a. Payback technique
b. Present value index
c. Net present value technique
d. None of these answers is correct.

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Answers: 2

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