Project A Project B Project C Project D Project E

Today (20,000) (30,000) (8,000) (3,000) (6,000)

Year 1 10,000 2,000 1,000 2,000 750

Year 2 5,000 4,000 2,000 2,000 1,500

Year 3 2,500 6,000 3,000 2,000 2,250

Year 4 2,000 8,000 4,000 2,000 3,000

Year 5 1,000 10,000 5,000 2,000 3,750

Year 6 500 12,000 (6,000)

What is Project Bs Payback Period?

a.3.5 years b) 4 years c) 4.5 years d) 5 years

What is the Crossover Rate between Project B and C?

a. 4.5%

b. 8.25%

c. 12.5%

d. 18.8%