Year Cost
Project 1
Project 2
Project 2
($1 Mil)
($1.5 Mil)
($2 Mil)
1
$300,000
$900,000
$300,000
2
$300,000
$500,000
$400,000
3
$300,000
$200,000
$600,000
4
$300,000
$200,000
$600,000
5
$300,000
$0
$1,000,000
Cost of Capital is 8%. Acceptable payback period is 3 1/2 years.
Acceptable discounted payback period is 4 1/2 years. Based on the
above data, calculate payback, discounted payback, net present
value, internal rate of return and modified rate of return.
Based on the above data,...