Answer:
a.
Project A 2.67 Years
Project B 1.5 Years
b.
Project A 3.07 Years
Project B 1.83 Years
Explanation:
a.
Payback Period
Project A
Year Project A Balance Paid Back years
0 -25 -25 0 0
1 5 -20 5 1
2 10 -10 10 1
3 15 5 10 0.67 (10/15)
4 20 25 0 0
Total 25 25 2.67
2.67 Years
Project B
Year Project A Balance Paid Back years
0 -25 -25 0 0
1 20 -5 20 1
2 10 5 5 0.5 (5/10)
3 8 13 0 0
4 6 19 0 0
Total 19 25 1.5
1.5 Years
b.
Working for Discounted Payback is attached with this answer in PDF Format Please Find That.
