Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$...

 

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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 1 2 3 4 347,000 48,000 68,000 68,000 443,000 49,500 24,300 22,300 19,800 14,900 Whichever project you choose, if any, you require a return of 15 percent on your investment. Project A Project B a-1. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period years years Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 1 2 3 4 347,000 48,000 68,000 68,000 443,000 49,500 24,300 22,300 19,800 14,900 Whichever project you choose, if any, you require a return of 15 percent on your investment. Project A Project B a-1. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period years years

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To calculate the payback period for each project we need to determine the time it takes for the cumu... View the full answer