Which project would be preferred using each method

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Reference no: EM132050361

Three projects have cash flows as indicated in the table below. Calculate the payback period for each project: a. Without discounting b. With discounting at 8% c. Net present value (NPV), using an 8% discount rate d. Which project would be preferred using each method? What do the results suggest about the payback method in general? Year Project A Project B Project C 0 $ (2,000,000.00) $ (1,500,000.00) $ (2,500,000.00) 1 500,000 200,000 1,000,000 2 550,000 350,000 1,000,000 3 600,000 500,000 500,000 4 650,000 650,000 100,000 5 700,000 800,000 100,000 6 750,000 950,000 100,000 7 800,000 1,100,000 100,00

Reference no: EM132050361

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