Mazen is now considering the investment of $30,000 in three available mutually exclusive investments. The prevailing discount rate is 10%. Using the Payback Period and the Net Present Value techniques list these three orders based on their degree of attractiveness.
|
Year
|
Project A
|
Project B
|
Project C
|
|
0
|
$(30,000)
|
$(30,000)
|
$(30,000)
|
|
1
|
10,000
|
5,000
|
6,000
|
|
2
|
8,000
|
5,000
|
6,000
|
|
3
|
7,000
|
7,000
|
6,000
|
|
4
|
5,000
|
8,000
|
6,000
|
|
5
|
5,000
|
10,000
|
6,000
|