Assignment
Consider the following two mutually exclusive projects:
Year
|
Cash Flow (A)
|
Cash Flow (B)
|
0
|
-$251,835
|
-$15,247
|
1
|
25,100
|
4,828
|
2
|
55,000
|
8,358
|
3
|
50,000
|
13,472
|
4
|
385,000
|
8,102
|
Whichever project you choose, if any, you require a 6 percent return on your investment.
a. What is the discounted payback period for Project A?
b. What is the discounted payback period for Project B?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.