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In: Finance

You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate...

You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate is 8%.

The first project (A) will cost $25,000 initially. The project will then return cash flows of $10,000 for 5 years.

The second project (B) will cost $50,000 initially. The project will then return cash flows of $30,000 for the next 2 years and $10,000 for 2 years after that.

The third project (C) will cost $30,000 initially. The project will then return cash flows of $11,000 for 3 years.

Q1: What is Project A's Payback Period?

Q2: What is Project B's Payback Period?

Q3: What is Project C's Payback Period?

Q2

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