Question
VWX Solutions is considering the following two projects. The discount rate is 7%. Year Project O1 Project P1 0 -$200,000 -$220,000 1 $50,000 $60,000 2
VWX Solutions is considering the following two projects. The discount rate is 7%.
Year | Project O1 | Project P1 |
0 | -$200,000 | -$220,000 |
1 | $50,000 | $60,000 |
2 | $60,000 | $70,000 |
3 | $70,000 | $80,000 |
4 | $80,000 | $90,000 |
a. Compute the payback period for each project. b. Calculate the NPV and recommend which project should be undertaken.
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College Algebra
Authors: Robert F Blitzer
7th Edition
013449492X, 9780134453262
