Calculate the Payback Period for Each of the Following Projects

question 127

Essay

Calculate the payback period for each of the following projects, then comment on the advisability of selection based on the payback period criterion in contrast to NPV: Project A has a cost of $15,000, returns $4,000 after-tax the first year and this amount increases by $1,000 annually over the five-year life; Project B costs $15,000 and returns $13,000 after-tax the first year, followed by four years of $2,000 per year.The firm uses a 10 percent discount rate.

Gain knowledge about different types of cost estimates and how they are calculated.

Comprehend the significance of budgeted cost of work scheduled (BCWS) and its application in project tracking.

Understand the factors influencing peripheral vascular resistance and their impact on blood circulation.

Describe the mechanisms and significance of venous return in cardiovascular health.