Porter Co is analyzing two projects for the future Assume that only

Question

Porter Co. is analyzing two projects for the future. Assume that only one project can be selected.

	Project X	Project Y
Cost of machine	$68,000	$60,000
Net cash flow:
Year 1	24,000	4,000
Year 2	24,000	26,000
Year 3	24,000	26,000
Year 4	0	20,000

The payback period in years for Project X is:
A.2.00.
B.3.83.
C.3.50.
D.2.83.
E.4.00.

Answer

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