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Alpha Industries has the following investment proposals: Period Project C Cost Project C Net Cash Flow Project D Cost Project D Net Cash Flow 0
Alpha Industries has the following investment proposals:
Period | Project C Cost | Project C Net Cash Flow | Project D Cost | Project D Net Cash Flow |
0 | 20,000 | - | 25,000 | - |
1 | 10,000 | 10,000 | 5,000 | 10,000 |
2 | 5,000 | 10,000 | 5,000 | 10,000 |
3 | 3,000 | 10,000 | 5,000 | 15,000 |
For each project, compute its payback period, net present value, and profitability index using a discount rate of 10%.
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