Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses a payback criterion of
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Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses a payback criterion of three years or less. Project A has a cost of $912,855, and Project B’s cost is $1,175,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?
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Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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