Calculate payback period for project

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Reference no: EM131990101

X-treme Vitamin Company is considering two investments, both of which cost $38,000. The cash flows are as follows: Year Project A Project B 1 $ 40,000 $ 38,000 2 10,000 9,000 3 15,000 20,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B. (Round your answers to 2 decimal places.) b-1. Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Reference no: EM131990101

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