Puppy Inc. Has the following mutually exclusive investment opportunities. If the appropriate discount rate was 15% what should you do?
Year. 0 Project X -500 Project Y -800
Year. 1 Project X 100. Project Y 500
Year. 2. Project. X. 475. Project 350
Year. 3 Project X 50 Project Y 350
A.Calculate each projects payback period cutoff. Which would you accept if Puppy's payback period cutoff is 2 years.
B. Calculate each project's discounted payback period cutoff. Which would you accept if puppy's payback period cutoff is 2 years.?
C. What is the NPV for each project?