What are the payback period of this two investment

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Question - You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:

 

0

1

2

3

4

A

-50

25

20

30

15

B

-100

20

40

50

30

Required -

a. What are the payback period of this two investment? If you require a payback period of less than two years, which investment will you choose?

b. If discount rate is 6%, what are the NPVs of this two investment?

c. What are the profitability index of this two investment?

Reference no: EM133168453

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