Thomas Company is considering two mutually exclusive projects. The firm has set a maximum 4 year payback requirement and a 12% cost of capital.
2. Thomas Company is considering two mutually exclusive projects. The firm has set a maximum 4 year payback requirement and a 12% cost of capital. The company has estimated its cash flows as shown in the following table:Project A Project BInitial Investment (CF0) $130,000 $85,000Year(t) Cash inflows (CFt)Project A Project B1 $25,000 $40,0002 35,000 35,0003 45,000 30,0004 50,000 10,0005 55,000 5,000a. Calculate the Payback Period […]