Question: 3.1 Consider two projects whose cash inflows are not even. Assume that the project costs R205 000. The net cash inflows for each year are

3.1 Consider two projects whose cash inflows are not even. Assume that the project costs R205 000. The net cash inflows for each year are as follows: Year Project X Project Y 1 R30 000,00 R75 000,00 2 R35 000,00 R95 000,00 3 R65 000,00 R60 000,00 4 R55 000,00 R26 000,00 5 R75 000,00 6 R95 000,00 REQUIRED 3.1.1 Calculate the payback period of each project and recommend the project that should be selected based on the payback period. ( 6 Marks)

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