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FinanceQ&A LibraryQuestion 7aTwo projects, Alpha and Beta, are being considered using the payback method. Each has an initial cost of $100,000.The annual cash flows for each project are listed below.|a) What is the pay back period in years for Alpha? (round to two decimal places)b) What is the pay back period in years for Beta? (round to two decimal places)Question 7bYear Project Alpha Project Beta15,00025,00025,00025,00025,00045,00025,000430,00025,00020,00025,00015,000Question

Asked Dec 10, 2019

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Please show how to do in excel. Thank you.

Step 1

Payback period is the period at which the investment made is expected to be recovered by an investor.

Step 2

Given:

Initial investment for both projects is $100,000

Step 3

**(a)**

For equal annual cashflows following fo...

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