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A company uses a payback period to appraise its project.All projects which have a payback period of 2 years should be accepted.

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Anylyze whether these two projects are acceptable.
Project A  
                              $m
Initial investment    (100)
Cash Flows year 1    50
                 year 2    40
                 year 3    20

Project B
                              $m
Initial investment    (120)
Cash Flows year 1    30
                 year 2    90
                 year 3    10
asked 6 years ago by anonymous

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