Question: Please do it by type not pics. 1.Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the
Please do it by type not pics.
1.Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years.
| Project B | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $12,500 | $3,500 | $4,480 | $1,820 | $0 | $1,300 |
| Payback = years. | ||||||
Should the project be accepted or rejected?
accepted
rejected
2.Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years.
| Project C | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $1,300 | $600 | $570 | $610 | $360 | $160 |
| Discounted payback period = years. | ||||||
Should the project be accepted or rejected?
accepted
rejected
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