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Compute the expected cash flows

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Wyre Company has identified the following two projects for investment in the year 2018 which are mutually exclusive. The expected cash flows are given below.

Year 0 1 2 3 4

Cash flows(X) (20,000) 8,000 17,000 6,000 10,000

Cash flows (Y) (30,000) 5,000 13,000 25,000 4,000

Required:

a) Determine which project(s) should be accepted if the pay back period of the company is three years

b) If the projects are independent will your decision differ from (a) above?

Reference no: EM133115292

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