Business & Finance

[kashauna1077]

Your division is considering 2 investment projects, each of which requires an up-front expenditure of $25 million. You estimate that cost of capital is 10% and that the investments will produce the following after-tax cash flows ( in millions of dollars). Both projects will have to be replaced after 5 years. What is the paybcak period for each project?

Year Project A Project B

1 5 20
2 10 10
3 15 9
4 18 8
5 6 7

[redcrx]

trick question, the answer is none of the above

[sara3]

well done, red! top of the class :o)