In: Finance
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