Evaluate each projects payback period cutoff

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Williams Inc. has the following mutually exclusive investment opportunities. If the appropriate discount rate was 15% what should you do?

year Project X Project Y

0 -600 -800

1 200 500

2 675 250

3 0 350

Evaluate each project's payback period cutoff. Which would you accept if William's Payback period cutoff is 2 years?

Evaluate each project's discounted payback period cutoff. Which would you accpet it William's payback period cutoff is 3 years?

Reference no: EM1344405

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