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What is the payback period of projects

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Sunland Crafts Corp. management is evaluating two independent capital projects that will each cost the company $260,000. The two projects will provide the following cash flows:

Year

Project A

 Project B

1

$62,750

$44,500

2

91,450

76,125

3

46,235

149,250

4 

149,655

 102,110

(a1) What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.)

The Payback of Project A is enter a number of years for the Payback of Project A rounded to 2 decimal places years and Project B is enter a number of years for the Payback of Project B rounded to 2 decimal places years.

Reference no: EM133076309

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