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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Assume that your firm is attempting to choose from between two project options. Project A offers the following opportunities: $450,000 invested today (year 0) will yield an expected stream of income of $150,000 per year for five years (i.e. years 1 to year 5); there is no return in year 0. Project B requires an initial investment of $400,000 (year 0), but its expected revenue stream is:
Year 0 - $0
Year 1 - $0
Year 2 - $100,000
Year 3 - $200,000
Year 4 - $300,000
Year 5 - $200,000
Using payback period as the only selection criteria, which is the better investment?
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| Project A |
| Project B |
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