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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Using Excel
1.) Three separate projects each have an initial cash outlay of $10,000. The cash flow for Peter's Project is $4,000 per year for 3 years. The cash flow for Paul's project is $2,000 in years 1 and 3, and $8,000 in year 2. Mary's Project has a cash flow of $10,000 in year 1, followed by $1,000 each year for years 2 and 3.
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a) Use the payback method to calculate how many years it will take for each project to recoup the initial investment.
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b) Which project would you consider most liquid?
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State the reason why
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