Each of two mutually exclusive projects involves an investment of $ 108,000.  

The cash flows for the projects are as follows:

                                         Year              Project “A”                  Project "B"

                                            1                    $30,000                            $36,000

                                            2                      30,000                              36,000

                                            3                      30,000                              36,000

                                           4                      30,000                               36,000

                    A.   Calculate each project's payback period.   

                    B.   Compute the IRR of each project.   

Answer rating: 100% (QA)

Here are the calculations A Payback Period Project A Investment 108000 Year 1 C... View the full answer