Question
1) (Payback) Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is
1)
(Payback) Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
Project A | ||||||
Time | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | -$2,500 | $950 | $930 | $820 | $600 | $400 |
2)
(Discounted Payback) Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project C | ||||||
Time | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | -$2,700 | $1,160 | $990 | $1,030 | $640 | $440 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started