Williams Inc. has the following mutually exclusive investment opportunities. If the appropriate discount rate was 15% what

Question:

Williams Inc. has the following mutually exclusive investment opportunities. If the appropriate was 15% what should you do?
year Project X Project Y
0 -600 -800
1 200 500
2 675 250
3 0 350
Calculate each project's cutoff. Which would you accept if William's cutoff is 2 years?
Calculate each project's discounted cutoff. Which would you accept it William's cutoff is 3 years?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... 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,...