Question
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$244,500...
Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0 –$244,500 –$14,607
1 29,800 4,237
2 59,000 8,285
3 55,000 13,203
4 410,000 8,788
Whichever project you choose, if any, you require a 6 percent
return on your investment.
a. What is the payback period for Project A?
What is the payback period for Project B?
What is the discounted payback period for Project A?
What is the discounted payback period for Project B?
What is the NPV for Project A?
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