Question: how to get the answer for payback period Topic 3 Exercise 3.1 Consider the following two mutually exclusive projects: Year Project A Cash flow ($)

how to get the answer for payback period

how to get the answer for payback period Topic 3
Topic 3 Exercise 3.1 Consider the following two mutually exclusive projects: Year Project A Cash flow ($) Project B Cash flow ($) O -300,000 -40,000 20,000 19,000 50,000 12,000 W N 50,000 18,000 4 390,000 10,500 You require a 15 percent return on your investment. For each project, calculate the following and explain which project should you choose. Payback period Net Present Value

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