Question
WH Smith Company is evaluating three projects: A, B, C, with cash flows as given in the table. Each project requires an initial investment of
WH Smith Company is evaluating three projects: A, B, C, with cash flows as given in the table. Each project requires an initial investment of $93,000 and has a required return of 10%.
| Year | A | B | C |
| 1 | 50,000 | 0 | 20,000 |
| 2 | 40,000 | 50,000 | 40,000 |
| 3 | 20,000 | 50,000 | 40,000 |
| 4 | 10,000 | 40,000 | 40,000 |
A) What is the payback period for project B (in years)?
B) What is the payback period for project C (in years)?
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Navigating The Investment Minefield A Practical Guide To Avoiding Mistakes Biases And Traps
Authors: H. Kent Baker , Vesa Puttonen
1st Edition
1787690563,1787690539
