Each of two mutually exclusive projects involves an investment of $168,000. Net cash flows for the projects are as follows: Year Project "A" Project "B"
1. $60,000 $55,000
2. 68,000 64,000
3. 36,000 42,000

Required:
a. Calculate each project's payback period.
b. Compute the Net Present Value (NPV) of each project when the firm's cost of capital is 8 percent.
c. Internal Rate of Return (IRR) -Your choice; based on your answer to part (B).
d. Modified Internal Rate of Return (MIRR) Your choice; based on your answer to part (B).

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

engaging in financial planning?

just took my test

answer; buying the bill at a discount from the face value to be received at maturity;