Helen and Donald are partners in a business. They have approached each other regarding possible investments to aid their business in creating more revenue. Helen's investments would require an initial outlay of cash of $38,000 but would provide and additional revenue stream of $21,000 per year. Donald's investment would cost $58,000 and would bring and additional revenue of $31,500 per year. Both investments would provide revenue for four years. using a discount rate of 10%, calculate the discounted payback period for each investment and determine which investment would better use the company's resources.

Answer rating: 100% (QA)

To calculate the discounted payback period for each investment we need to consider the present value ... View the full answer