What is the discounted payback period for each project

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Reference no: EM131878581

Consider the following two mutually exclusive projects:

Year Cash Flow

(A) Cash Flow

(B)

0 –$ 354,000 –$ 48,000

1 41,000 23,600

2 61,000 21,600

3 61,000 19,100

4 436,000 14,200

Whichever project you choose, if any, you require a 14 percent return on your investment.

What is the payback period for each project?

What is the discounted payback period for each project?

Reference no: EM131878581

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