1. Assume you have two investment alternatives and they are not mutually exclusive as follows + Year 0 1 2 3 Cash flow (A) Cash flow (B) 200,000 70,000 60,500 40, 500 80,000 50,000 120,000 60,000 And the required return is 10 percent for both projects. Required: Evaluate which one of these projects you will select based on the capital budgeting criteria; the discounted payback period and NPY.

1. Assume you have two investment alternatives and they are not mutually exclusive as follows + Year 0 1 2 3 Cash flow (A) Cash flow (B) 200,000 70,000 60,500 40, 500 80,000 50,000 120,000 60,000 And the required return is 10 percent for both projects. Required: Evaluate which one of these projects you will select based on the capital budgeting criteria; the discounted payback period and NPY.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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