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Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the payback period for project A.
Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the payback period for project A. (Round to 3 decimals)
| Year | Project A | Project B |
| 0 | -7,000,000 | -4,000,000 |
| 1 | 2,000,000 | 1,200,000 |
| 2 | 2,000,000 | 1,200,000 |
| 3 | 2,000,000 | 1,200,000 |
| 4 | 2,000,000 | 1,200,000 |
| 5 | 2,000,000 | 1,200,000 |
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The Complete Personal Finance Handbook
Authors: Teri B Clark
1st Edition
160138047X, 978-1601380470
