Question: Consider the following projects, which are not mutually exclusive. Calculate payback for each project. Note that Payback may be a fraction of a year. ii.)

Consider the following projects, which are not mutually exclusive. Calculate payback for each project. Note that Payback may be a fraction of a year. ii.) Calculate NPV for each project if the discount rate is 15%.

Year0 Year1 Year2 Year 3 Project 1 -1000 2000 Project 2 -1000 500 500 2000 Project 3 -1000 3000 -1500 -500

Project 1: Payback: NPV: Project 2: Payback: NPV: Project 3: Payback: NPV:

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