Question
Cash Flows:A Cash Flows:B Year 0 -$245,000 -$250,000 1 $70,500 $60,000 2 $85,000 $60,000 3 $90,000 $70,000 4 $125,000 $110,000 a) The company's required rate
| Cash Flows:A | Cash Flows:B | ||
| Year | |||
| 0 | -$245,000 | -$250,000 | |
| 1 | $70,500 | $60,000 | |
| 2 | $85,000 | $60,000 | |
| 3 | $90,000 | $70,000 | |
| 4 | $125,000 | $110,000 | |
a) The company's required rate of return is 8%. Which project, if either, should company choose?
b) What is the discounted payback period for each? (25 marks) Please show detailed breakdown of how all calculations for a and b are found
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
