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Use the table for the question(s) below. Consider the following two projects with cash flows in $: Project Year 0 Cash Flow Year 1 Cash
Use the table for the question(s) below. Consider the following two projects with cash flows in $:
Project | Year 0 Cash Flow | Year 1 Cash Flow | Year 2 Cash Flow | Year 3 Cash Flow | Year 4 Cash Flow | Discount Rate |
A | -100 | 40 | 50 | 60 | N/A | .15 |
B | -73 | 30 | 30 | 30 | 30 | .15 |
The payback period for project A is closest to:
2.0 years. | ||
2.2 years. | ||
2.5 years. | ||
2.4 years. |
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