Would either alternative be a good investment

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Reference no: EM131507819

Question: A hotel manager wishes to choose between two alternative investments giving the following annual net cash inflows over a 5-year period:

The amount of the investment under either alternative will be $70,000.

a. Using the payback period method, in which year, under both alternatives, will she have recovered the initial investment?

b. Using NPV at 10%, would either alternative be a good investment?

Reference no: EM131507819

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