Consider two projects whose annual net cash flows are not even. Assume that each project costs R200 000. The net cash flows for each year are as follows:

YEAR	PROJECT MANGO	PROJECT ORANGE
1	20 000	100 000
2	40 000	80 000
3	60 000	60 000
4	80 000	40 000
5	100 000	20 000

Calculate the PBP of each project and recommend the project that should be selected based on the payback method

Answer rating: 100% (QA)

To calculate the Payback Period PBP for each project we need to determine how long it takes for the ... View the full answer