Question
An entity plans to invest for expansion purposes. There are two investment options in front of the enterprise, and an initial investment of 150,000 TL
An entity plans to invest for expansion purposes. There are two investment options in front of the enterprise, and an initial investment of 150,000 TL is required for both projects. Cash flows of 40,000 TL in the 1st year, 60,000 TL in the 2nd year, and 50,000 TL in the 3rd year are expected from Project A, respectively. The expected net cash flows from Project B are 20.000 TL in 1st year, 80.000 TL in 2nd year, and 100.000 TL in 3rd year, respectively. Evaluate these investment projects with payback period and discounted payback period methods (discount rate=10%).
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