i.Calculate the payback period in years for Project C. Round your answer to two decimal places.ii. Project D has a payback period of 3.35 years. The investor uses a threshold of 3.5 years for decisionmaking. If Project C and Project D are mutually exclusive projects, which project should be acceptedusing the payback period method? Provide your reasons. b) Answer parts i and i based on the information below:Project C has the following cash flows.Years2345Cashflows-$75,000$13,000$19,000$22,000$25,000$26,000

The payback period is the time required to reach the break-even point. in general payback period is…

Answered: b) Answer parts i and i based on the…

b) Answer parts i and i based on the information below: Project C has the following cash flows. Years 1 2 3 4 Cashflows -$75,000 $13,000 $19,000 $22,000 $25,000 $26,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

i.
Calculate the payback period in years for Project C. Round your answer to two decimal places.
ii. Project D has a payback period of 3.35 years. The investor uses a threshold of 3.5 years for decision
making. If Project C and Project D are mutually exclusive projects, which project should be accepted
using the payback period method? Provide your reasons.

b) Answer parts i and i based on the information below:
Project C has the following cash flows.
Years
2
3
4
5
Cashflows
-$75,000
$13,000
$19,000
$22,000
$25,000
$26,000

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