Question
Year Project A Project B Project C 2018 ($3,000,000) ($3,000,000) ($3,100,000) 2019 $0 $975,000 $985,000 2020 $900,000 $975,000 $925,000 2021 $900,000 $975,000 $1,000,000 2022 $3,000,000
Year Project A Project B Project C 2018 ($3,000,000) ($3,000,000) ($3,100,000) 2019 $0 $975,000 $985,000 2020 $900,000 $975,000 $925,000 2021 $900,000 $975,000 $1,000,000 2022 $3,000,000 $1,000,000 $950,000 This week we will look at the discounted payback method which is the time needed to pay back the original investment in terms of discounted future cash flows. To get full credit please do the following: 1. Define the technique in detail. 2. Discuss the difference between the two methods. 3. Analyze the numbers in the problem using an excel spreadsheet. 4. USe a 10% discount rate.
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