\[NPV = -100,000 + rac{30,000}{1.10} + rac{40,000}{1.10^2} + rac{50,000}{1.10^3}\]

\[PBP_B = rac{100,000}{20,000} = 5 years\]

The payback period for project A is:

Chapter 13 Capital Budgeting Techniques Problems And Solutions Pdf -

\[NPV = -100,000 + rac{30,000}{1.10} + rac{40,000}{1.10^2} + rac{50,000}{1.10^3}\]

\[PBP_B = rac{100,000}{20,000} = 5 years\] \[NPV = -100,000 + rac{30,000}{1

The payback period for project A is: