Maria Bakery Company is considering two investments, both of which cost$8,000. The cash flows are as follows:Year123b.) $14,029 & $18,071a.) 1 year & 1 yeara.) What is the payback period for Project A & Project B?b.) What is the net present value (NPV) for Project A & Project B? Assume acost of capital of 10%.Select the correct answers for parts (a) and (b).b.) none listedProject Cash FlowsProject A$12,0008,0006,000b.) $18,071 & $13,029b.) $14,029 & $19,071a.) none listeda.) 0.5 years & 0.8 yearsa.) 0.7 years & 0.8 yearsProject B$10,0006,00016,000

The ‘discounted payback period method’ calculate how many years it will take to recover the initial…

Maria Bakery Company is considering two investments, both of which co $8,000. The cash flows are as follows: Year 1 2 3 Project Cash Flows Project A $12,000 8,000 6,000 b.) $14,029 & $18,071 a.) 1 year & 1 year b.) none listed b.) $18,071 & $13,029 b.) $14,029 & $19,071 Project B $10,000 6,000 16,000 .) What is the payback period for Project A & Project B? .) What is the net present value (NPV) for Project A & Project B? Assume ost of capital of 10%. elect the correct answers for parts (a) and (b).

Maria Bakery Company is considering two investments, both of which co $8,000. The cash flows are as follows: Year 1 2 3 Project Cash Flows Project A $12,000 8,000 6,000 b.) $14,029 & $18,071 a.) 1 year & 1 year b.) none listed b.) $18,071 & $13,029 b.) $14,029 & $19,071 Project B $10,000 6,000 16,000 .) What is the payback period for Project A & Project B? .) What is the net present value (NPV) for Project A & Project B? Assume ost of capital of 10%. elect the correct answers for parts (a) and (b).

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Maria Bakery Company is considering two investments, both of which cost
$8,000. The cash flows are as follows:
Year
1
2
3
b.) $14,029 & $18,071
a.) 1 year & 1 year
a.) What is the payback period for Project A & Project B?
b.) What is the net present value (NPV) for Project A & Project B? Assume a
cost of capital of 10%.
Select the correct answers for parts (a) and (b).
b.) none listed
Project Cash Flows
Project A
$12,000
8,000
6,000
b.) $18,071 & $13,029
b.) $14,029 & $19,071
a.) none listed
a.) 0.5 years & 0.8 years
a.) 0.7 years & 0.8 years
Project B
$10,000
6,000
16,000

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