Can someone please help me out and explain these to me. Thank you!
Posted: Sat Nov 27, 2021 5:31 pm
Can someone please help me out and explain these to me.
Thank you!
1. Projects A and B have the following cash flows: Co C C2 C3 C4 A -100 60 45 0 10 B -80 10 0 30 100 (i) If a company uses the payback rule with a cutoff period of 2 years, which projects would it accept? (ii) Are these good decisions if the opportunity cost of capital is 10%?
Thank you!
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