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Payback period for project

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Quattro, Inc. has the following projects available. The company has historically used a 4-year cutoff (payback period) for projects. The required return rate is 11%.

YearCash Flow ACash Flow B

0$(82,000) $(125,000)

1$16,000 $38,000

2$18,000$33,000

3$24,000$31,000

4$26,000$27,000

5$32,000$25,000

a) What is the payback period for each project?

b) What is the NPV for each project?

c) Which project, if any, should the program accept and why?

Reference no: EM131190550

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