Question: How long is the payback period for the two projects below and which one would you chose and why? Your answer should be based on

How long is the payback period for the two

How long is the payback period for the two projects below and which one would you chose and why? Your answer should be based on a specific technique. (5 marks) Project A Initial 150.000 investment Project B Initial 250.000 investment Year 1 Year 2 Year 3 Year 4 Year 5 Cash inflows 10.000 20.000 40.000 40.000 40.000 Year 1 Year 2 Year 3 Year 4 Year 5 Cash inflows 40.000 70.000 70.000 70.000 80.000

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