As the director of Big Sky Corp, you are evaluating two mutually exclusive projects with the following net cash flow:
Year Cash Flow X ($) Cash Flow Y ($)
0 -100,000 -100,000
1 60,000 20,000
2 30,000 20,000
3 30,000 40,000
4 10,000 60,000
5 10,000 20,000
What is the payback for Y?
2.33 years
4.00 years
3.33 years
5.00 years
What is the discounted payback for Project Y if the interest rate is 10% per year?
4.26 years
3.86 years
4.16 Years
2.36 Years
PLEASE show work