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A company has two projects to choose from with the following annual after-tax cash flows: Project X Investment (today) $800,000 Investment (Year 1) $500,000 Years

A company has two projects to choose from with the following annual after-tax cash flows:

Project X

Investment (today) $800,000

Investment (Year 1) $500,000

Years 25 $750,000

Project Y

Investment (today) $1,800,000

Years 15 $950,000

The firms cost of capital is 12 percent.

Compute both projects payback period and discounted payback period.

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