Question

A small company wants to invest in Project A or B. The cash flows for both are shown below. Determine the payback period for each project assuming a MARR of 5% and suggest which project should be selected based on discounted payback period analysis. 

Project A
Project B
Initial Cost
-600
-1000
Annual Benefit
165
300
Life
10 Years
10 Years
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Transcribed Image Text:Project A Project B Initial Cost -600 -1000 Annual Benefit 165 300 Life 10 Years 10 Years
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