Question
Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 11
Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 11 percent.
| Year | Project F | Project G |
|---|---|---|
| 0 | $ 129,000 | $ 199,000 |
| 1 | 63,000 | 43,000 |
| 2 | 47,000 | 58,000 |
| 3 | 57,000 | 87,000 |
| 4 | 52,000 | 117,000 |
| 5 | 47,000 | 132,000 |
Calculate the payback period for both projects.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Calculate the NPV for both projects.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Which project, if any, should the company accept?
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Labour Finance And Inequality
Authors: Suzanne J. Konzelmann, Simon Deakin, Marc Fovargue-Davies, Frank Wilkinson
1st Edition
1138919721, 978-1138919723
