X-treme Vitamin Company is considering two investments, both of which cost $42,000. The cash flows are as follows: Project A $44,000 15,000 15,000 Project B $42,000 14,000 20,000 Year 1 3 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B. (Round your answers to 2 decimal places.) Payback Period Project A Project B year(s) year(s) a-2. Which of the two projects should be chosen based on the payback method?
X-treme Vitamin Company is considering two investments, both of which cost $42,000. The cash flows are as follows: Project A $44,000 15,000 15,000 Project B $42,000 14,000 20,000 Year 1 3 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B. (Round your answers to 2 decimal places.) Payback Period Project A Project B year(s) year(s) a-2. Which of the two projects should be chosen based on the payback method?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 4E: In the Southern Company Managerial Challenge, which alternative for complying with the Clean Air Act...
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