Which ever project you choose if any you require a 16


Consider the following 2 mutually exclusive projects:

                  Cash Flow a                     Cash Flow b

Year 0        -343,000                           - 50,000

Year 1         52,000                               24,700

Year 2         72,000                               22,700

Year 3         72,000                               20,200

Year 4         447,000                             15,300

Which ever project you choose if any you require a 16% return on your investment.

What is the buyback period for each project?

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Finance Basics: Which ever project you choose if any you require a 16
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