Williams Inc. has the following mutually exclusive investment opportunities. If the appropriate discount rate was 15% what should you do?
year Project X Project Y
0 -600 -800
1 200 500
2 675 250
3 0 350
Evaluate each project's payback period cutoff. Which would you accept if William's Payback period cutoff is 2 years?
Evaluate each project's discounted payback period cutoff. Which would you accpet it William's payback period cutoff is 3 years?