Question: If company X was considering 2 separate projects, each with an initial required investment of $350,000 and with anticipated returns as follows, what is the

If company X was considering 2 separate projects, each with an initial required investment of $350,000 and with anticipated returns as follows, what is the payback period of each? Please show how to calculate.

Project 1 Project2
Year1=130,000 Year1=110,000
Year2=120,000 Year2=110,000
Year3=100,000 Year3=110,000
Year4=90,000 Year4=110,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!