Acme Mfg is considering two projects, A & B, with cash flows as shown below: period CFA CFB 0 -50,000 -100,000 1 20,000 60,000 2 20,000 25,000 3 20,000 25,000 4 20,000 25,000 The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places

Acme Mfg is considering two projects, A & B, with cash flows as shown below: period CFA CFB 0 -50,000 -100,000 1 20,000 60,000 2 20,000 25,000 3 20,000 25,000 4 20,000 25,000 The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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