As a Financial Analyst of Morgan Investments Co., you are going to make a business...

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Finance

As a Financial Analyst of Morgan Investments Co., you are going to make a business investment decision on which of the two possible investments the company should undertake. Both projects cost $200,000 with a rate of return of 12%. Below are the cash profits of the two projects: Year Project A Project B Profits ($) 1 36,000 37,300 2 42,000 40,000 3 56,000 56,000 4 44,000 51,000 5 35,000 39,650 6 32,500 42,500 7 66,000 80,000

Solve for the payback period

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