Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 343,000 –$ 50,000 1 52,000 24,700 2 72,000 22,700 3 72,000 20,200 4 447,000 15,300 Whichever project you choose, if any, you require a return of 16 percent on your investment. a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
What is the discounted payback period for each project?