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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 247,583 $ 16,995 1 27,100 5,928 2 52,000 8,902
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
---|---|---|
0 | $ 247,583 | $ 16,995 |
1 | 27,100 | 5,928 |
2 | 52,000 | 8,902 |
3 | 51,000 | 13,932 |
4 | 423,000 | 9,877 |
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? |
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