Enter the following information in Figure 1. Year 0 1 1 2 3 4 5 6 7 D Project C (100,000) 40.000 30,000 30,000 15,000 10,000 Project A Project B (200,000) (250,000) 80,000 40.000 50.000 60.000 40.000 80.000 70.000 100.000 30,000 100,000 Figure 1. Given values 2 3 4 5 Refer to Figures 2-7 for problem solving 9 Payback Period 10 11 Year Project A Initial Unrecovered Cash inflow Investment investment 12 12 0 14 1 15 16 2 3 4 5 17 18 19 20 Payback period Figure 2. Payback period for project A 22 Project B Initial Cash inflow Unrecovered Investment investment 23 Year 59 Project B Year Investment Cash Inflows 60 Discounted Unrecovered PVF Cash Inflows Investment 61 0 62 1 2 3 65 4 02 66 00 67 68 Discounted payback period Figure 6. Discounted payback period for project B 24 0 1 25 26 27 28 29 30 31 2 3 4 5 Payback period Figure 3. Payback period for project B 33 Year Project C Initial Cash inflow Investment Unrecovered investment 34 35 36 70 Project C 71 Discounted Unrecovered Year Investment Cash Inflows PVF Cash Inflows Investment 72 0 73 1 74 2 75 3 76 4 5 77 78 79 Discounted payback period 80 81 Most preferred project Figure Discounted payback period for project C 0 1 2 3 4 5 37 38 39 40 41 42 Payback period 43 44 Most preferred project Figure 4. Payback period for project C 46 Discounted Payback Period 47 48 Project A Cash Inflows PVF Discounted Unrecovered Cash Inflows Investment Year Investment 49 50 0 51 1 52 2 53 3 54 4 55 5 56 57 Discounted payback period