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?