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Zeta Inc. has two investment opportunities with the following data: Period Project K Cost Project K Net Cash Flow Project L Cost Project L Net
Zeta Inc. has two investment opportunities with the following data:
Period | Project K Cost | Project K Net Cash Flow | Project L Cost | Project L Net Cash Flow |
0 | 6,000 | - | 9,000 | - |
1 | 3,000 | 3,500 | 4,500 | 5,000 |
2 | 3,000 | 3,500 | 2,000 | 5,000 |
3 | 2,000 | 4,000 | 2,000 | 6,000 |
Calculate the payback period, net present value, and profitability index for each project using a discount rate of 16%.
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