Week 4 Team assignment Part a

Week 4 Team assignment Part a - Project A = 100,000/32,000...

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Year Project A Project B 0 (100,000.00) (100,000.00) 1 32,000.00 - 2 32,000.00 - 3 32,000.00 - 4 32,000.00 - 5 32,000.00 200,000.00 a) What is each projects payback period? (payback period is calculated as investment required / net annual cash flows)
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Unformatted text preview: Project A = 100,000/32,000 = 3.125 years Project B = since the cash flow of 200,000 does not come until year 5 the payback period would be 5 years...
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