(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year...

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(Discounted payback period) Gios Restaurants is considering a project with the following expected cash flows: Year Project C

(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the

business finance

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Answer 1

Answer #1

Using excel formula

Year	0	1	2	3	4
Project A	-$210.00	$85.00	$75.00	$85.00	$105.00
Discounted Cash Flow	-210.00	76.71	61.09	62.49	69.67
Cumulative Cash flow	-210.00	-133.29	-72.19	-9.71	59.96
Discounted Payback Period	3.14
excel formula	(3+9.71/59.96)

NPV of Project A =PV of Cash Flows -Investment =30000*((1-(1+11%)^-4)/11%)-110000 = -16926.63

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Answer 2

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