Fitch Industries

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate

 Fitch Industries is in the process of choosing the better of two equal-risk, mutually exclusive capital expenditure projects, M and N. The relevant cash flows for each project are shown in the following table. The firm’s cost of capital is 14%.

Project M

Project N

Initial Investment (CF)

$28,000

$27,000

Year (t)

Cash inflows (CFt)

1

$10,000

$11,000

2

$10,000

$10,000

3

$10,000

$9,000

4

$10,000

$8,000

a. Calculate each projects payback period

b. Calculate the net present value (NPV) for each project

"Is this question part of your assignment? We Can Help!"

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started