Question
JKL Industries has two potential projects. The expected cash flows are as follows. The required rate of return is 10%. Year Project G1 Project H1
JKL Industries has two potential projects. The expected cash flows are as follows. The required rate of return is 10%.
Year | Project G1 | Project H1 |
0 | -$80,000 | -$100,000 |
1 | $30,000 | $35,000 |
2 | $40,000 | $45,000 |
3 | $50,000 | $55,000 |
4 | $60,000 | $65,000 |
a. Determine the payback period for each project. b. Calculate the NPV and decide which project is preferable.
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
22nd Edition
130566616X, 978-1305666160
