Question: Two projects are considered for evaluation and the cash flows are given in the following table. Calculate the payback period , disconted payback period ,
Two projects are considered for evaluation and the cash flows are given in the following table. Calculate the payback period, disconted payback period, NPV, PI for the two projects. (assume year-end discounting with a discount rate of 10%). Please show formulas used.
| Year | Project A | Project B |
| 0 | -$5,000 | -$6,000 |
| 1 | 4,000 | 3,000 |
| 2 | 3,000 | 3,000 |
| 3 | 2,000 | 3,000 |
| 4 | 1,000 | 3,000 |
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