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1. What is the simple payback for Project Z, the projects cash flows are as shown in the table? Year Project Z 0 -$125 1
1. What is the simple payback for Project Z, the projects cash flows are as shown in the table?
Year | Project Z |
0 | -$125 |
1 | 50 |
2 | 40 |
3 | 30 |
4 | 30 |
A) 2.50 years
B) 2.82 years
C) 3.00 years
D) 3.17 years
2. At what discount rate would you be indifferent between accepting and rejecting a project which costs $6,000 today with annual cash flows of $1,200 for the next nine years?
A) 13.50%
B) 13.60%
C) 13.70%
D) 13.80%
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