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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $256,874 $15,824 1 29,700 5,005 2 58,000 8,852 3 54,000
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $256,874 | $15,824 |
| 1 | 29,700 | 5,005 |
| 2 | 58,000 | 8,852 |
| 3 | 54,000 | 13,508 |
| 4 | 411,000 | 9,750 |
| Whichever project you choose, if any, you require a 6 percent return on your investment. |
| a. What is the payback period for Project A? |
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| b. What is the payback period for Project B? |
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Finance A Quantitative Introduction Volume 1
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128015845, 978-0128015841
