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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