# Tri Star, Inc., has the following mutually exclusive projects: YearProject A Project B0–\$13100  –\$8500 1 7300   3200 2 6300   2700 3 2,100   5100  Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) If the appropriate discount rate is 9 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Question
Asked Nov 11, 2019
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Tri Star, Inc., has the following mutually exclusive projects:

 Year Project A Project B 0 –\$ 13100 –\$ 8500 1 7300 3200 2 6300 2700 3 2,100 5100

Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

If the appropriate discount rate is 9 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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Step 1

Calculation of Payback Period and Net Present Value:

The payback period for Project A is 1.92 years and for Project B is 2.51 years.

The net present value for Project A is \$521.42 and for Project B is \$646.45.

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