X-treme Vitamin Company is considering two investments, both of which cost $46,000. The cash flows are as follows: Year Project A Project B 1 $ 48,000 $ 46,000 2 19,000 21,000 3 16,000 20,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B.

Answer and Explanation:

The computation of the payback period for project A and project B is shown below:

Year   Project A    Cumulative        Project B   Cumulative cash inflow

                              cash inflow  

1       $ 48,000$48,000         $46,000      $46,000

2$19,000          $67,000$21,000       $67,000

3$16,000          $83,000         $20,000     $87,000

Now

Payback is

= Cash outflow ÷ Cumulative inflow Payback

For project A

= $46,000 ÷ $48,000

= 0.96 years  

For project B

= $46,000 ÷ $46,000

= 1 year

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; be sure that the information on file is correct;