2. Compute for the payback period of each project and explain your answer. Which project will you choose and why? Show solution. A company has to decide between three possible projects. Capital cost...


2. Compute for the payback period of each project and explain your answer.<br>Which project will you choose and why? Show solution.<br>A company has to decide between three possible projects. Capital cost for Project A is<br>P300,000; Project B P500,000 and Project C P450,000 respectively. Net Cash inflow of<br>each project are as follows:<br>Net cash inflow in pesos<br>Project A<br>Project B<br>Project C<br>Year 1<br>75, 000<br>100, 000<br>50, 000<br>Year 2<br>125, 000<br>200, 000<br>75, 000<br>Year 3<br>125, 000<br>300, 000<br>250, 000<br>Year 4<br>100, 000<br>300, 000<br>300, 000<br>Year 5<br>75, 000<br>150, 000<br>200, 000<br>Payback period - Project A<br>Payback period - Project B.<br>Payback period - Project C<br>

Extracted text: 2. Compute for the payback period of each project and explain your answer. Which project will you choose and why? Show solution. A company has to decide between three possible projects. Capital cost for Project A is P300,000; Project B P500,000 and Project C P450,000 respectively. Net Cash inflow of each project are as follows: Net cash inflow in pesos Project A Project B Project C Year 1 75, 000 100, 000 50, 000 Year 2 125, 000 200, 000 75, 000 Year 3 125, 000 300, 000 250, 000 Year 4 100, 000 300, 000 300, 000 Year 5 75, 000 150, 000 200, 000 Payback period - Project A Payback period - Project B. Payback period - Project C

Jun 11, 2022
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