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QW Ltd wants to invest in a project and they have two project proposals. The cash flows of two different projects are given as below:
QW Ltd wants to invest in a project and they have two project proposals. The cash flows of two different projects are given as below:
Year | Net cash flow of project 1 | Net cash flow of project 2 |
0 | $60,000 | $60,000 |
1 | $39,436 | $32,000 |
2 | $13,200 | $29,000 |
3 | $29,000 | $13,200 |
4 | $32,000 | $39,436 |
Compute the discounted payback period, if the cost of capital is 10% for both the projects. ( Answers rounded to second decimal point.) Please include your solution.
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