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A fishery is considering two projects (A and B). The projects' expected net cash flows are as shown below. The interest rate is 6%. You
A fishery is considering two projects (A and B). The projects' expected net cash flows are as shown below. The interest rate is 6%. You need a payback period of less than two years. The projects are mutually exclusive. What project(s) will you select?
Time | Project A | Project B |
0 | -275 | -275 |
1 | 250 | $150 |
2 | 125 | $75 |
3 | -50 | $125 |
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