Consider the investment projects in Table 1, all of which have a four-year investment life. Table 1 11eb816b_6f6d_2635_84e6_e70a669c8ff2_SM2226_00 (a) What is the payback period of each project (b) What is the discounted payback period at an interest rate of 15% for each project

Contemporary Engineering Economics 6th Edition by Chan Park

Edition 6ISBN: 978-0134105598

Edition 6ISBN: 978-0134105598

Exercise 51

Consider the investment projects in Table 1, all of which have a four-year investment life.
Table 1

(a) What is the payback period of each project
(b) What is the discounted payback period at an interest rate of 15% for each project

Explanation

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Payback period is the time span needed f...