Question: question 1: how do I find out how long it will take for bill to recoup his initial investment in project A? Project B? Long-term

 question 1:how do I find out how long it will take

question 1:

how do I find out how long it will take for bill to recoup his initial investment in project A? Project B?

for bill to recoup his initial investment in project A? Project B?Long-term investment decision, payback method Personal Finance Problem Bill Williams has theopportunity to invest in project A that costs $9,600 today and promises

Long-term investment decision, payback method Personal Finance Problem Bill Williams has the opportunity to invest in project A that costs $9,600 today and promises to pay $2,300, $2,400, $2,400, $2,100 and $1,900 over the next 5 years. Or, Bill can invest $9,600 in project B that promises to pay $1,600, $1,600, $1,600, $3,500 and $4,000 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A? b. How long will it take for Bill to recoup his initial investment in project B?Herky Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging in each of the next 5 years, producing the series of cash inflows shown in the following table: B . The initial investment is estimated at $1.02 million. Using a 9% discount rate, determine the net present value (NPV) of the machine given its expected operating cash inflows. Based on the project's NPV, should Herky make this investment? The net present value (NPV) of the new wrapping machine is $ (Round to the nearest cent.)(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year Cash inflow $326.400 $306,000 $244.800 $285,600 $163,200

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