Payback Period :
Inicial———————-110,000
1years————————-20,000
2years———————–30,000
3years————————-40,000
3.4years———————–20,000
total: 110,00
Payback Period proyect b
Inicial ———-110,000
First Year————40,000
Second Year——–40,000
2.75years———–30,000
= 2.75 years
Npv(projectA)
210,000/(1+0.12)^3
149,473.85
-110,000
Npv=$39,473.85
Npv(projectb)
200,000/(1+0.06)^3
167,923.86
110,000
57,923.86
IRR(Project A):
By trial and error, IRR (Project A) =
IRR(Project B):
By trial and error, IRR (Project B) =