What is the payback period for both projects

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Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 7 percent.

Year.    Dry Prepreg.          Solvent Prepreg

0         -$1,870,000                -$835,000

1            1,117,000                    460,000

2            934,000                        770,000

3           767,000                             424,000

Question 1a. What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

 

Reference no: EM132478602

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