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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $313,058 $15,540 1 29,800 5,197 2 59,000 8,698 3 58,000
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $313,058 | $15,540 |
| 1 | 29,800 | 5,197 |
| 2 | 59,000 | 8,698 |
| 3 | 58,000 | 13,394 |
| 4 | 425,000 | 8,632 |
| 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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Financial Management And Policy
Authors: James C. Van Horne
12th Edition
0130326577, 9780130326577
