The cash flows of two alternatives are given below. Determine the difference in the no-return payback period for both altermatives. Alternatives B. First cost, $ 20,000 26,000 NCF, $ per year 2,000 (year 1-3) 2,500 (year 1-4) 3,500 (year 4-10) 4,000 (year 5-10) 1,500 2000 Life, year 10 10 O 8 months between both alternatives O6 months between both alternatives O 12 months between both alternatives 7 months between both alternatives
The cash flows of two alternatives are given below. Determine the difference in the no-return payback period for both altermatives. Alternatives B. First cost, $ 20,000 26,000 NCF, $ per year 2,000 (year 1-3) 2,500 (year 1-4) 3,500 (year 4-10) 4,000 (year 5-10) 1,500 2000 Life, year 10 10 O 8 months between both alternatives O6 months between both alternatives O 12 months between both alternatives 7 months between both alternatives
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:The cash flows of two alternatives are given below. Determine the difference in the no-return payback period
for both altermatives.
Alternatives
A
First cost, $
20,000
26,000
NCF, $ per year
2,000 (year 1-3)
3.500 (year 4-10)
2,500 (year 1-4)
4,000 (year 5-10)
S.S
1,500
2000
Life, year
10
10
O 8 months between both alternatives
O 6 months between both alternatives
O 12 months between both altermatives
07 months between both alternatives
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