Question
Consider the following 2 mutually exclusive projects: Cash Flow a Cash Flow b Year 0 -343,000 -50,000 Year 1 52,000 24,700 Year 2 72,00022,700 Year
Consider the following 2 mutually exclusive projects:
Cash Flow a Cash Flow b
Year 0 -343,000 -50,000
Year 1 52,000 24,700
Year 2 72,00022,700
Year 372,000 20,200
Year 4 447,000 15,300
Whichever project you choose if any you require a 16% return on your investment.
What is the buyback period for each project?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
