Question: All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. Calculate the payback period for project B.

  1. All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. Calculate the payback period for project B. (Round to 3 decimals)

    Year Project A Project B
    0 -750,000 -1,400,000
    1 300,000 500,000
    2 300,000 500,000
    3 300,000 500,000
    4 300,000 500,000

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