Question
Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0 $ 30,000 $ 33,000 1 17,000 18,000 2 13,500 12,000 3
| Janina, Incorporated, has the following mutually exclusive projects. |
| Year | Project A | Project B |
|---|---|---|
| 0 | $ 30,000 | $ 33,000 |
| 1 | 17,000 | 18,000 |
| 2 | 13,500 | 12,000 |
| 3 | 3,900 | 13,500 |
| a-1. | Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) |
Project A ________years
Project B________years
| a-2. | If the company's payback period is two years, which, if either, of these projects should be chosen? |
multiple choice 1
|
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
