Essay
Proposals A and B each cost $600,000 and have five-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows:Year 1$150,000Year 2140,000Year 3110,000Year 4150,000Year 550,000$600,000?Determine the cash payback period for each proposal. Round answers to two decimal places.
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Proposal A: $600,000/$159,000 ...View Answer
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