Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,530 0 -$ 243,567 27,200 1 55,000 60,000 413,000 234 5,173 8,261 13,237 8,729 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,530 0 -$ 243,567 27,200 1 55,000 60,000 413,000 234 5,173 8,261 13,237 8,729 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
-$ 15,530
0 -$ 243,567
27,200
1
55,000
60,000
413,000
234
5,173
8,261
13,237
8,729
Whichever project you choose, if any, you require a 6 percent return on your investment.
a. What is the payback period for Project A?
Payback period
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