Question: Consider the following two mutually exclusive projects which ever project you choose if any, you require a return of 15% on your investment. what is

Consider the following two mutually exclusive projects

which ever project you choose if any, you require a return of 15% on your investment.

what is the discounted payback period for each project ?

what is the profitability index for each project?

year cash flow (a) cash flow (b)
0 -344000 -49000
1 51000 24600
2 71000 22600
3 71000 20100
4 44600 15200

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