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Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year 0 (A) -$365,000 (B) -$59,000 1 48,000 30,000 2 68,000 25,000 3
Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year 0 (A) -$365,000 (B) -$59,000 1 48,000 30,000 2 68,000 25,000 3 68,000 22,500 443,000 17,600 Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Project A Project B Payback Period years. years a-2. If you apply the payback criterion, which investment will you choose? O Project A O Project B b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
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