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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $230,324 $16,246 1 27,000 5,466 2 59,000 8,622 3 56,000
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | $230,324 | $16,246 |
1 | 27,000 | 5,466 |
2 | 59,000 | 8,622 |
3 | 56,000 | 13,991 |
4 | 426,000 | 9,861 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A? |
|
b. What is the payback period for Project B? |
|
c. What is the discounted payback period for Project A? |
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