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6) Consider the following options and using the payback period method determine which alternative should be selected YEAR B 2
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Year Cumulative cumulatie in come 15,000 67,000 2 15000 + 25000 63, 000763,000 140,00) ?(130,000 7 40,000 + 55,00d 130,000+ 5

Because , for B it takes 3 years to recover $185,000 which is cost and for A it takes 5 years to cover $230,000, the payback period for B is less and therefore it has to be selected

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