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JDH Investments Limited is considering the following two tourism investment options, both with a 10% required rate of return and a five-year lifespan. CASH FLOWS

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JDH Investments Limited is considering the following two tourism investment options, both with a 10% required rate of return and a five-year lifespan. CASH FLOWS PROJECT P PROJECT O YEAR 0 1 2 3 (60 000) 20 000 30 000 40 000 50 000 60 000 (60 000) 50 000 20 000 5 000 5 000 5000 4 S A. Calculate the: i. payback period for both projects. ii. Net Present Value. iii. Profitability Index (5 marks) (7 marks) (4 marks)

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