Question: Year End Project A Project B
0 ($100) ($100)
1 $60 0
2 $60 0
3 $140
Opportunity Cost of Capital = 9% Maximum Acceptable Payback Period is less than 2 years.
2. Assuming that the projects are independent (they do not compete with each other; hence you could accept both of them). Which project(s) would you accept based on:
NPV?
IRR?
Payback?