| Investment Appraisal - Exercise 3.9 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Year | Project X | Project X Cumulative | Project Y | Project Y Cumulative | |
| 1 | 5000 | 5000 | 3000 | 3000 | |
| 2 | 4000 | 9000 | 3000 | 6000 | |
| 3 | 1000 | 10000 | 3000 | 9000 | |
| 4 | 2000 | 12000 | 1000 | 10000 | |
| 5 | 2000 | 14000 | 1000 | 11000 | |
| 6 | 2000 | 16000 | 5000 | 16000 | |
| The Payback Period is 3 years for Project X and 4 years for Project Y. | |||||
| Project X should therefore be chosen. |