Initial investment at time zero

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Project C requires a $450 initial investment at time zero, and promises $200 at the end of every year for 8 years.

Project D requires a $350 initial investment at time zero, and promises $130 at the end of every year for 9 years.

The traditional payback period for projects C and D respectively are:

A. Project C = 3.9 year ; Project D = 4.2 years

B. Project C = 3.5 year ; Project D = 3.75 years

C. Project C = 1.19 year ; Project D = 5.7 years

D. Project C = 2.25 year ; Project D = 2.69 years

Reference no: EM132034029

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