Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$187,224 -$15,025 1 26,000 4,942 2 51,000 8,047 3 57,000

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B) 0 -$187,224 -$15,025 1 26,000 4,942 2 51,000 8,047 3 57,000 13,469 4 388,000 8,545 Whichever project you choose, if any, you require a 6 percent return on your investment.

Required: (a) What is the payback period for Project A? (Click to select)2.98 years3.23 years3.14 years3.04 years3.29 years (b) What is the payback period for Project B? (Click to select)2.04 years2.26 years2.22 years2.15 years2.09 years

(c) What is the discounted payback period for Project A? (Click to select)3.32 years3.39 years3.23 years3.13 years3.06 years

(d) What is the discounted payback period for Project B?

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