What is reeds cost of not taking the suppliers

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Reference no: EM13355820

What is Reed's cost of not taking the suppliers' discounts?

Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

YEAR 

PROJECT A 

PROJECT B

$100,000 

$100,000

32,000 

0

32,000 

0

32,000

0

32,000

0

32,000 

$200,000

The required rate of return on these projects is 11 percent.
What is each project's payback period?

Reference no: EM13355820

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