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You are considering investment in the following projects. Project As cash flows Year 0 Year 1 Year 2 Year 3 Year 4 -$12,000 $7,000 $3,000
You are considering investment in the following projects.
Project As cash flows
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
-$12,000 | $7,000 | $3,000 | $2,000 | $1,500 |
Project Bs cash flows:
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
-$11,000 | $6,000 | $2,500 | $1,500 | $1,200 |
Payback Period for project A is ______ and Payback Period for project B is _______. (SHOW WORK)
A. 2 years; 2.83 years B. 3 years; 3.83 years C. 2.83 years; 3.83 years D. 3.83 years; 3 years E. 3 years; 2.83 years
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