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21. Will Project A be recommended? The cutoff period is 3 years. The cost of capital...

21. Will Project A be recommended? The cutoff period is 3 years. The cost of capital is 12%.

Year Project A
1 -$75,000
2   $32,400
3 $30,200
4 $36,600

1) No! Project A has payback period of 1.06 years.
2)Yes! Project A has payback period of 0.98 years.
3) Yes! Project A has payback period of 2.338 years.
4)No! Project A has payback period of 2.338 years.
d. Yes! Project A has payback period of 1.06 years.

49. Will project A be recommended? The cost of capital is 16%.

Year Project A
0 $-$75,000
1 $32,400
2 $30,200
3 $36,600

1) Yes! Project A has IRR of 17.40%
2)Yes! Project A has IRR of 15.06%
3) No! Project A has IRR of 8.40%
4) No! Project A has IRR of 15.06%

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