Cost 100,000 Similar projects, Eta and Zeta, are being considered using the payback method. Each has...

 

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Cost 100,000 Similar projects, Eta and Zeta, are being considered using the payback method. Each has an initial cost of $100,000. Annual cash flows for each project are provided in the table at the right. Year Project Eta Project Zeta 1 20,000 15,000 2 20,000 20,000 3 20,000 35,000 4 20,000 25,000 a) What is the pay back period in years for Eta? (round to two decimal places) 5 20,000 20,000 6 20,000 15,000 b) What is the pay back period in years for Zeta? Determine the cumulative cash flows for each year in the column next to the table (round to two decimal places) Cost 100,000 Similar projects, Eta and Zeta, are being considered using the payback method. Each has an initial cost of $100,000. Annual cash flows for each project are provided in the table at the right. Year Project Eta Project Zeta 1 20,000 15,000 2 20,000 20,000 3 20,000 35,000 4 20,000 25,000 a) What is the pay back period in years for Eta? (round to two decimal places) 5 20,000 20,000 6 20,000 15,000 b) What is the pay back period in years for Zeta? Determine the cumulative cash flows for each year in the column next to the table (round to two decimal places)

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a Payback Period for Project Eta To calculate the payback period for Project Eta well follow these s... View the full answer