What is the payback period of each project? Year.........................Project A......................Project B 0.................................$200.............................$200 1.......................................80.................................100 2.......................................80.................................100 3.......................................80.................................100 4.......................................80.......................................

Question:

What is the payback period of each project?

Year.........................Project A......................Project B

0.................................−$200.............................−$200

1.......................................80.................................100

2.......................................80.................................100

3.......................................80.................................100

4.......................................80.......................................

Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...