Question
Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 8 percent.
Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 8 percent.
| What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
|
| Year | Dry Prepreg | Solvent Prepreg | ||||
| 0 | $ | 1,810,000 | $ | 805,000 | ||
| 1 | 1,111,000 | 430,000 | ||||
| 2 | 922,000 | 710,000 | ||||
| 3 | 761,000 | 412,000 |
|
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
