Question: Time 0 1 2 3 4 5 6 7 Expected Net Cash Flows Project A Project B ($375) ($575) ($300) $190 ($200) $190 ($100) $190


Time 0 1 2 3 4 5 6 7 Expected Net Cash Flows Project A Project B ($375) ($575) ($300) $190 ($200) $190 ($100) $190 $600 $190 $600 $190 $926 $190 ($200) $0 20/ f. What is the regular payback period for these two projects? Project A Time period Cash flow Cumulative cash flow 0 (375) 1 (300) 2 (200) 3 (100) 4 600 5 $600 6 7 $926 ($200) Intermediate calculation for payback Payback using intermediate calculations 0 $575 1 $190 2 $190 3 $190 4 5 $190 $190 6 $190 7 $0 Project B Time period Cash flow Cumulative cash flow Intermediate calculation for payback Payback using intermediate calculations Payback using PERCENTRANK Ok because cash flows follow normal pattern
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