Calculate the payback period for both projects

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Reference no: EM132177300

Question - A company is evaluating the following two mutually exclusive projects. The company mandates a three-year project payback. The required return is 10%.

Year	Project F	Project G
0	-$150,000	-$235,000
1	44,000	77,000
2	68,000	77,000
3	40,000	77,000
4	60,000	77,000
5	54,000	77,000

(a) Calculate the payback period for both projects?

(b) Calculate the NPV for both projects.

(d) Which project, if any, should the company accept?

(e) What can we infer about the IRRs for these projects?

Reference no: EM132177300

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