Question: Using information from E, complete an evaluation using NPV at 12% for both of the alternatives. Would either of the alternatives be a good investment for Dinah?
E: Dinah, the operator of Dinah's Diner, wishes to choose between two alternative investments providing the following annual net cash inflows over the five-year investment period:
Calculate the payback time for each alternative, assuming an initial investment of $33,000 under each alternative.