Describe the each project''s payback period

Reference no: EM1310564

A additional mutually exclusive projects, Project A , Project B, Cash flows associated, Payback period and Net present value.

Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

YEAR PROJECT A PROJECT B

0 -$100,000 -$100,000

1 32,000 0

2 32,000 0

3 32,000 0

4 32,000 0

5 32,000 $200,000

The required rate of return on these projects is 11 percent.

1. Describe the each project's payback period?

2. Describe the each project's net present value?

Reference no: EM1310564

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