Calculate the Payback Period for Each of the Following Projects,then

question 54

Essay

Calculate the payback period for each of the following projects,then comment on the advisability of selection based on the payback period criterion: 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 5-year life; Project B costs $15,000 and returns $13,000 after-tax the first year,followed by 4 years of $2,000 per year.The firm uses a 10% discount rate.

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Definitions:

Climate Change

The long-term alteration of temperature and typical weather patterns in a place, largely attributed to human activities such as fossil fuel burning which releases greenhouse gases.

Global Fish Stocks

The populations of fish species worldwide, crucial for maintaining ecosystem balance and supporting human diets.

Riparian Zone

Areas adjacent to rivers and streams with distinct vegetation and soil conditions, important for ecosystem health and biodiversity.

Trampling

The damage to vegetation or soil compaction caused by heavy foot or vehicle traffic.