Payback Period for Project Assignment | Homework For You
May 22nd, 2020
Consider the following two mutually exclusive projects: |
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Payback Period for Project Assignment | Homework For You
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Year | Cash Flow (A) | Cash Flow (B) |
0 | –$230,324 | –$16,246 |
1 | 27,000 | 5,466 |
2 | 59,000 | 8,622 |
3 | 56,000 | 13,991 |
4 | 426,000 | 9,861 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A? |
b. What is the payback period for Project B? |
c. What is the discounted payback period for Project A? |
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