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Use the table for the question(s) below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Project

 




Use the table for the question(s) below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Project Cash FlowCash FlowCash FlowCash FlowCash Flow Rate A -100 40 50 60 N/A .15 B -73 30 30 30 30 .15 (1) Assume that projects A and B are mutually exclusive. Which project is the correct investment decision and the best rational for that decision? (2) How many years of payback period for project A will be?

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