Calculate the payback period for both projects

Reference no: EM133666740

Problem

Andouille Spices, Inc., has the following mutually exclusive projects available. The company has historically used a 3-year cutoff for projects. The required return is 10%.

Year	Project F	Project G
0	-$215,000	-$318,000
1	104,800	74,600
2	92,300	96,500
3	87,600	125,600
4	78,000	168,800
5	78,800	189,200

A. Calculate the payback period for both projects.
B. Calculate the NPV for both projects.

Reference no: EM133666740

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