An investor is considering two investment projects. Project A requires an initial payment of £13,000. In return, the investor will receive a payment of £18,600 after one year. Project B requires an initial payment of £10,900. In return, the investor will receive a payment of £1,300 at the end of every month for one year. Calculate the cross-over rate of the projects % Enter a percentage correct to 1 decimal place. What is the payback period of each project? Project A: months Project B: months

An investor is considering two investment projects. Project A requires an initial payment of £13,000. In return, the investor will receive a payment of £18,600 after one year. Project B requires an initial payment of £10,900. In return, the investor will receive a payment of £1,300 at the end of every month for one year. Calculate the cross-over rate of the projects % Enter a percentage correct to 1 decimal place. What is the payback period of each project? Project A: months Project B: months

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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