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.

---

Definitions:

Doing Good

Engaging in actions that are beneficial or helpful to others or society as a whole.

Their

A possessive pronoun used to indicate ownership or relation to certain people or things previously mentioned or easily identified.

Geysers

Natural hot springs that periodically eject water and steam into the air due to underground volcanic activity.

Farther

A comparative adverb used to describe physical distance that is greater than another.