Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax
|
Cash flows |
Project A |
Project B |
Project C |
|
Initial Investment (CFo) |
$60,000 |
$100,000 |
$110,000 |
|
Cash ınflows (CFt), t=1 to 5 |
20,000 |
31,500 |
32,500 |
a.Calculate the payback period for each project.
b.Calculate the
c.Calculate the
d.Summarize the preferences dictated by each measure, and indicate which project you would recommend. Explain why.
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