Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less.

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Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $989,940, and project B's cost is $1,110,800. Cash flows from both projects are given in the following table.

Year. Project A. Project B

1 $86,212 $586,212

2 313,562. 413,277

3 427,594. 231,199

4. 285,552

What are their discounted payback periods?

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: May 17, 2024 11:00 PM

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Timeline Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less.

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Fundamentals of corporate finance

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