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A firm is considering the following projects. Its opportunity cost of capital is 8%. Cash Flows, $ Project Time: 0 1 2 3 4 A
A firm is considering the following projects. Its opportunity cost of capital is 8%.
Cash Flows, $ | ||||||
Project | Time: | 0 | 1 | 2 | 3 | 4 |
A | -6,100 | +1,275 | +1,275 | +3,550 | 0 | |
B | -2,100 | 0 | +2,100 | +2,550 | +3,550 | |
C | -6,100 | +1,275 | +1,275 | +3,550 | +6,100 | |
a-1. What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number.)
a-2. What is the discounted payback period on each project? (Do not round intermediate calculations. Round your answers to 2 decimal places. If any of the projects does not pay back on a discounted basis, enter zero ("0").)
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