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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
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 15 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 2 3 Project A Cash flow -3,000 2,000 1,500 3,000 Project B Cash flow -15,000 6,000 4,000 15,000 The discounted payback for project A is The discounted payback for project B is
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