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Business, 24.12.2021 03:00 daniel9299

Bill Williams has the opportunity to invest in project A that costs today and promises to pay , , , and over the next 5 years. Or, Bill can invest in project B that promises to pay , , , and over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A? b. How long will it take for Bill to recoup his initial investment in project B? c. Using the payback period, which project should Bill choose? d. Do you see any problems with his choice?

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