Question: A company is considering two projects. Project A Project B Initial investment $200,000 $200,000 Cash inflow Year 1 $60,000 $90,000 Cash Inflow Year 2
A company is considering two projects. Project A Project B Initial investment $200,000 $200,000 Cash inflow Year 1 $60,000 $90,000 Cash Inflow Year 2 $60,000 $90,000 Cash inflow Year 3 $60,000 $40,000 Cash inflow Year 4 $60,000 $50,000 Cash inflow Year 5 $60,000 $70,000 What is the payback period for Project B? Ca. 3 years b. 25 years c. 2 years Od. 3.5 years e. 4.5 years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
