Find each project''s payback period

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Reference no: EM1311081

What is Reed's cost of not taking the suppliers' discounts?

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.
What is each project's payback period?

Reference no: EM1311081

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