Project AProject BInitial cash outlay$180,000$160,000Annual depreciation$25,000$20,000Annual net cash inflow$50,000$40,000after taxExpected salvage$0$0valueProjects A and B are to be evaluated using the payback period and theunadjusted rate of return. State which project should be accented

The payback period is the time you need to recover the cost of your investment. In simple terms, it…

Answered: Project A Project B Initial cash outlay…

Project A Project B Initial cash outlay $180,000 $160,000 Annual depreciation $25,000 $20,000 Annual net cash inflow $50,000 $40,000 after tax

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Project A
Project B
Initial cash outlay
$180,000
$160,000
Annual depreciation
$25,000
$20,000
Annual net cash inflow
$50,000
$40,000
after tax
Expected salvage
$0
$0
value
Projects A and B are to be evaluated using the payback period and the
unadjusted rate of return. State which project should be accented

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