Make capital budgeting decision based on the payback period

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Suppose that another couple of proposals is submitted for capital allocation. They have the following cash inflows:

Year

Proposal 1($)

Proposal 2($)

I

10,000

5,500

2

10,500

5,500

3

4,200

5,500

4

1,900

5,500

5

1,580

5,500

Make a capital budgeting decision based on the payback period criteria if both projects require a $25,000 initial investment.

Reference no: EM131307158

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