Porter Co. is analyzing two projects for the future. Assume that only one project can be...

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Porter Co. is analyzing two projects for the future. Assume that only one project can be selected. Project X Project Y $65,00

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Answer 1

Answer #1

Payback period of project Y
years	net cash flow	cumulative cash flow
0	-60400	-60400
1	4000	-56400
2	26000	-30400
3	26000	-4400
4	20000	15600
Paybackperiod = 3+(4400/20000)
pay back period = 3.22
Option "3.22" Is CORRECT

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Answer 2

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