Question
Excel Activity: Capital Budgeting Tools Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Expected Net Cash
Excel Activity: Capital Budgeting Tools Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:
| Expected Net Cash Flows | ||
| Year | Project A | Project B |
| 0 | -$420 | -$620 |
| 1 | -410 | 175 |
| 2 | -280 | 175 |
| 3 | -140 | 175 |
| 4 | 840 | 175 |
| 5 | 840 | 175 |
| 6 | 828 | 175 |
| 7 | -280 | 175 |
Do not round intermediate calculations.
At a cost of capital of 8%, what is the discounted payback period for these two projects? Round your answers to two decimal places.
Discounted payback period (Project A): _________ years
Discounted payback period (Project B): _________ years
Please provide the excel formula for the the answer number too, I would love to understand them, please tell me if some element necessary to answer the questions is missing. Thank you very much.
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Ethics In Finance
Authors: John R. Boatright
3rd Edition
1118615824, 978-1118615829
