Solution-Accepted with a discount rate

Accepted with a discount rate

Reference no: EM131317426

Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $1,912,855, and project B's cost is $1,875,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?

Year	Project A	Project B
1	$ 186,212	$516,212
2	393,562	613,277
3	497,594	731,199
4	485,552

Reference no: EM131317426

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Accepted with a discount rate

Reference no: EM131317426

Reference no: EM131317426

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