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Determine the cash payback period for each proposal

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Reference no: EM132478423

Point 1: Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inflows of $1,680,000. Proposal A is expected to provide an annual net cash inflow of $280,000, while the annual net cash inflows for Proposal B are as follows:

Year 1 $350,000

Year 2 $315,000

Year 3 $280,000

Year 4 $280,000

Year 5 $245,000

Year 6 $210,000

Question 1: Determine the cash payback period for each proposal. Round your answers to two decimal places.

Cash Payback Period

Proposal A years ?

Proposal B years ?

Reference no: EM132478423

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