Question: Given the information below for project A: Year Project A Project B 0 (1,000) (1,000) 1 600 600 2 300 300 3 200 200 4
Given the information below for project A:
| Year | Project A | Project B |
| 0 | (1,000) | (1,000) |
| 1 | 600 | 600 |
| 2 | 300 | 300 |
| 3 | 200 | 200 |
| 4 | 100 | 100 |
| 5 | 500 | 500 |
What is the payback period for project A? Given a 10% discount, what is the DISCOUNTED payback period for project B?
| 2.5 years / 3.83 years | ||
| 3.25 years / 3 years | ||
| 2.5 years / 2.5 years | ||
| 3 years / 3.83 years |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
