What is the discounted payback period on each project

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A firm is considering the following projects. Its opportunity cost of capital is 12%.

Project           0               1               2            3                 4

A                -8,500   +1,875   +1,875     +4,750            0

B                 -4,500         0     +4,500     +3,750     +4,750

C                  -8,500     +1,875   +1,875   +4,750     +8,500

Question 1) What is the payback period on each project?

Question 2) What is the discounted payback period on each project?

Reference no: EM132487370

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