Question

In: Finance

a) Four investment projects have the following net cash flows. The cost of capital is 15%....

a) Four investment projects have the following net cash flows. The cost of capital is 15%. Decide which of them should be accepted using the net present value method.

  1. Find the discounted payback period.

YEAR

PROJECT A

PROJECT B

PROJECT C

PROJECT D

0

(10,000)

(15,000)

(20,000)

(30,000)

1

5,000

5,000

10,000

0

2

5000

5,000

10,000

0

3

20,000

5,000

4,000

100,000

4

1,000

10,000

2,000

120,000

5

-

5,000

-

60,000

Solutions

Expert Solution

jeff jeffy answered 9 months ago
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