What is the buyback period

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Reference no: EM131428828

Consider the following 2 mutually exclusive projects:

                  Cash Flow a                Cash Flow b

Year 0        -343,000                         - 50,000

Year 1         52,000                             24,700

Year 2         72,000                             22,700

Year 3         72,000                             20,200

Year 4         447,000                        15,300

Whichever project you choose if any you require a 16% return on your investment.

What is the buyback period for each project?

Reference no: EM131428828

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