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As a financial manager you are to evaluate two independent projects X and Y for your company. The cashflows of each project are given below.
As a financial manager you are to evaluate two independent projects X and Y for your company. The cashflows of each project are given below.
Year | Project X | Project Y |
0 | (80000) | (100000) |
1 | 60000 | 30000 |
2 | 30000 | 30000 |
3 | 30000 | 30000 |
4 | 20000 | 30000 |
5 | 10000 | 30000 |
Calculate the payback period for both projects.
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