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A firm is considering the following projects. Its opportunity cost of capital is 12%. Project 0...

A firm is considering the following projects. Its opportunity cost of capital is 12%.

Project 0 1 2 3 4

A -8,500 +1,875 +1,875 +4,750 0

B -4,500 0 +4,500 +3,750 +4,750

C -8,500 +1,875 +1,875 +4,750 +8,500

1) What is the payback period on each project?

2) What is the discounted payback period on each project?

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jeff jeffy answered 9 months ago
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