In: Finance
Mont Irwin Machine Shop is considering the following 3 mutually exclusive projects. The initial investment of each project is $54,000.
Project A | Project B | Project c | |
Years | operating | cash | flow |
1 | 28,000 | 25,000 | 25,000 |
2 | 29,000 | 29,000 | 27,000 |
3 | 30,000 | 29,000 | 33,000 |
4 | 29,000 | 34,000 | 34,000 |
Calculate the Payback Period for each project
Calculate the Discounted Payback Period for each project
Which project is better?
Using the data from exercise. Calculate Net Present Value using a 10% cost of capital
Which project is better?