Cash Flows Assignment | Homework For You
March 18th, 2020
Your firm is subject to capital rationing and can only invest $60,000. You’ve estimated the following cash flows (in $) for two projects:
| Year | Project A | Project B |
| 0 | -53,000 | -53,000 |
| 1 | 10,000 | 30,000 |
| 2 | 20,000 | 20,000 |
| 3 | 30,000 | 10,000 |
| 4 | 40,000 | 0 |
The required return for both projects is 8%.
1) What is the payback period for project A?
2) What is the payback period for project B?
3) What is the NPV for project A?
4) What is the NPV for project B? Get Finance homework help today
