Find the discounted payback period for each project


Consider the following two mutually exclusive projects:

Year    Cash Flow (A)             Cash Flow (B)

0       -$ 347,000             -$     49,500          

1             48,000                     24,300          

2             68,000                     22,300          

3             68,000                     19,800          

4            443,000                     14,900          

Whichever project you choose, if any, you require a 15 percent return on your investment.

What is the discounted payback period for each project?

What is the profitability index for each project?

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Finance Basics: Find the discounted payback period for each project
Reference No:- TGS0550476

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