Question: The ALT Group is considering three independent projects, with cash flows as provided below. The MARR is 12% and the budget Constraint is $125,000. Calculate the rate of return and pay back period for each project.
| End of Yr |
Project A |
Project B |
Project C |
| 0 |
-$69,000 |
-$63,500 |
-$37,350 |
| 1 |
26,655 |
21,790 |
13,579 |
| 2 |
26,655 |
21,790 |
13,579 |
| 3 |
26,655 |
21,790 |
13,579 |
| 4 |
26,655 |
21,790 |
13,579 |