Answer to Question #147661 in Finance for 2so

Question

You recently accepted an assignment with Oxford Limited as a financial consultant. One of your first assignments is the analysis of two proposed capital investment projects. Details of initial investments, after-tax cash flows and average annual profits are represented below:
Year After-tax Cash flows

Initial investments
Cash flows



Average annual profits

1
2
3
4 Project A Project B
(R50 000)
R26 200
R12 200
R12 200
R5 000
R1 400 (R50 000)
R14 200
R14 200
R14 200
R14 200
R1 700


2.1. Which project has a shorter payback period? Motivate your answer by doing the relevant calculations (answers expressed in years, months, and days).

Answer 1

Dear 2so, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order