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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 237,692 $ 15,912 1 27,000 5,615 2 58,000 8,966
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
---|---|---|
0 | $ 237,692 | $ 15,912 |
1 | 27,000 | 5,615 |
2 | 58,000 | 8,966 |
3 | 55,000 | 13,256 |
4 | 416,000 | 8,572 |
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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