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Problem 2: Calculating Payback. Tulip Mania, Inc., currently evaluating the following two projects: Year Cashflow (A) Cashflow (B) 0 -80,000 -100,000 1 45,000 10,000 2
Problem 2: Calculating Payback. Tulip Mania, Inc., currently evaluating the following two projects:
Year | Cashflow (A) | Cashflow (B) |
0 | -80,000 | -100,000 |
1 | 45,000 | 10,000 |
2 | 25,000 | 40,000 |
3 | 20,000 | 45,000 |
4 | 10,000 | 120,000 |
2a. The payback period for project A is _______years.
2b. The payback period for project B is _______years.
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