Question: 36. Build Fast Ltd is considering two mutually exclusive projects at Adelaide. The cash flows associated with the projects are as follows: Year 0 1

36. Build Fast Ltd is considering two mutually exclusive projects at Adelaide. The cash flows associated with the projects are as follows: Year 0 1 2 3 4 5 Project Sunrise Project Sunset -$15,0000 $-15,0000 $45,000 $0 $45,000 $0 $45,000 $0 $45,000 $80,000 $45,000 $20,0000 The required rate of return on these projects is 12%. (a) What is each project's payback period? (2 marks) (b) What is each project's net present value? (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
