Question

i an having trouble fogurong out payback period of for project helium

Period 2 x Do Homework - X matha.com/Student/PlayerHomework aspalhomeworked=553235570&questionid=1&flushed. Dashboard S -world .de www.rockefellere. CSEA WORK Save Video Me 100 New Tab Come Bacoor 0 0 2 0 0 Freeridrosan Other Bookmaris Casey Fogarty & 03/30/20 4:16 PM Financial Management GBEC 427-02 Homework: Chapt. 10 - Capital Budgeting Techniques Save Score: 0 of 3 pts 1 of 4 complete HW Score: 0%, 0 of 12 pts Warm-Up 10-1 (similar to) Question Help Elysi a p a pod of years and current must choose between two mutually exclusive projects Project Hydrogen requires an in t utay of $31,000, project Hallum requires an Wi lay of 4,000. Using the expected cash flows given for each project in the following table calculate each project's payback period. Which project meets Elysian's standards? The payback period of project Hydrogen is 5.65 years (Round to two decimal places) The payback period of project Hum a s Pound to two decimal places) Data Table Concordo che control the ht) Expected cash inflows Hydrogen $5,000 $7,500 30,000 $7.500 $9.000 $8.000 $5,000 $4,000 34.000 $5.500 33.000 Print Done Enter your arower in the arower box and then click Check Arower

Answer 1

Payback period: it is the amount of time required to recover the original cost of the project.

Payback period of project Hydrogen = 5.67 years.
Payback period of project Helium = 5.33 years.

$31,000 Cummulative. No. of years to reach 31,voo Cagh How 500v 11, ovo 5000 6 οσο 9000 20,000 I am u esh 25,000 5000 29,00 32,000 5+ (31-290 = 5.66 years. 4000 3000 5.67 years payback $34,000 to reach. No. of years Cashflowe ummulative 7500 - 7500 d 15,000 m 7500 23,000 8000 s 27,000 4000 to 32,500 5500 5+1 34-32.5 = 5.33 37,000 T 4.5 4500 payback - 5.33 years