Solve each project discounted payback period cutoff

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Puppy Inc. has the following mutually exclusive investment opportunities. If the appropriate discounts was 15% what should you do?

Year Project X. Project Y

0. -500. -800

1. 100. 500

2. 475. 350

3. 50. 350

Question 1: Calculate each project's payback period. Which would you accept if Puppy's payback period cutoff is 2 years?

Question 2: Calculate each project's discounted payback period cutoff. Which would you accept if Puppy's payback period cutoff is two years?

Question 3: What is the NPV for each project?

Reference no: EM132568480

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