Question
Sunland Crafts Corp. management is evaluating two independent capital projects that will each cost the company $300,000. The two projects will provide the following cash
Sunland Crafts Corp. management is evaluating two independent capital projects that will each cost the company $300,000. The two projects will provide the following cash flows:
| Year | Project A | Project B | ||
|---|---|---|---|---|
| 1 | $88,750 | $66,500 | ||
| 2 | 87,450 | 99,000 | ||
| 3 | 48,235 | 155,250 | ||
| 4 | 125,655 | 106,110 |
(a1)
What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.)
| The Payback of Project A is enter a number of years for the Payback of Project A rounded to 2 decimal places years and Project B is enter a number of years for the Payback of Project B rounded to 2 decimal places years. |
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Foundations Of Financial Markets And Institutions
Authors: Franco Modigliani, Frank J. Jones, Michael G. Ferri, Frank J. Fabozzi
3rd Edition
0130180793, 978-0130180797
