Question
XYZ Industries is analyzing two potential investments. The projected cash flows for each project are listed below. The companys discount rate is 10%. Year Project
XYZ Industries is analyzing two potential investments. The projected cash flows for each project are listed below. The company’s discount rate is 10%.
Year | Project Q1 | Project R1 |
0 | -$70,000 | -$85,000 |
1 | $20,000 | $25,000 |
2 | $25,000 | $30,000 |
3 | $30,000 | $35,000 |
4 | $40,000 | $45,000 |
a. Determine the payback period for each project. b. Compute the NPV and decide which project is better.
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Mathematics for Physical Chemistry
Authors: Robert G. Mortimer
4th Edition
124158092, 124158099, 978-0124158092
