In: Finance
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | –$191,176 | –$15,661 |
1 | 25,000 | 4,981 |
2 | 56,000 | 8,773 |
3 | 52,000 | 13,426 |
4 | 386,000 | 8,474 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A?
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