Project 1 Project 2 Initial Year 1 $ 35,000 $ 35,000 Year 2 5,000 16,000 Year...

	Project 1	Project 2
Initial Year 1	$ 35,000	$ 35,000
Year 2	5,000	16,000
Year 3	16,000	23,000
Year 4	22,000	12,000
Year 5	(3,600)	11,600
Estimated scrap value	5,000	5,000

Cost of capital 14%

Calculate:

Payback period
Average rate of return on initial investment
Net present value

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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