Question: MUST show Excel calculation for payback Expected Net Cash Flows Time Project A Project B 0 ($375) ($575) 1 ($300) $190 2 ($200) $190 3
MUST show Excel calculation for payback
| Expected Net Cash Flows | ||||||||||
| Time | Project A | Project B | ||||||||
| 0 | ($375) | ($575) | ||||||||
| 1 | ($300) | $190 | ||||||||
| 2 | ($200) | $190 | ||||||||
| 3 | ($100) | $190 | ||||||||
| 4 | $600 | $190 | ||||||||
| 5 | $600 | $190 | ||||||||
| 6 | $926 | $190 | ||||||||
| 7 | ($200) | $0 | ||||||||
| | ||||||||||
| f. What is the regular payback period for these two projects? | ||||||||||
| Project A | ||||||||||
| Time period | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | ||
| Cash flow | (375) | (300) | (200) | (100) | 600 | 600 | 926 | (200) | ||
| Cumulative cash flow | -$375 | -$675 | -$875 | -$975 | -$375 | $225 | $1,151 | $951 | ||
| Intermediate calculation for payback | ||||||||||
| Payback using intermediate calculations | 4.625 | |||||||||
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