Alibaba company is choosing between two projects. Table 4 shows Project A and Project B cash flows, if time value of money is taken into consideration with an interest rate of 10% for both projects, what would be the discounted payback period for both projects? Which project should Alibaba company choose and why? Table 4: Project A and Project B Cash Flows Project B Year Project A -1,000 -1,000 200 200 2 400 300 3 600 800 100 1,000 4)
Alibaba company is choosing between two projects. Table 4 shows Project A and Project B cash flows, if time value of money is taken into consideration with an interest rate of 10% for both projects, what would be the discounted payback period for both projects? Which project should Alibaba company choose and why? Table 4: Project A and Project B Cash Flows Project B Year Project A -1,000 -1,000 200 200 2 400 300 3 600 800 100 1,000 4)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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