Question: Consider the following two projects with cash flows in $. The payback period for project Alpha is closest to: Year 0 Year 1 Year 2

 Consider the following two projects with cash flows in $. The

Consider the following two projects with cash flows in $. The payback period for project Alpha is closest to: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/E C/F CE C/E C/ F C/ F C/ F C/F Rate Alpha 79 20 25 30 35 40 N/A N/A 15% Beta -80 25 25 25 25 25 25 25 16% 3.2 years. 2.9 years. 3.1 years. 2.6 years

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