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Please help, will thumbs up the correct answer. Thank you so much! Suppose your firm is considering two independent projects with the cash flows shown
Please help, will thumbs up the correct answer. Thank you so much!
Suppose your firm is considering two independent projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 12 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three years, respectively. Time 0 1 3 Project A Cash flow -5000 1000 3000 5000 Project B Cash flow - 10000 5000 5000 5000 The discounted payback for project Ais The discounted payback for project B is (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)Step by Step Solution
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