The athletic department at Big State University is consideri…
The athletic department at Big State University is considering two different facility renovation projects on their campus, both with 5 year life expectancies. Utilizing the payback period approach, determine the payback period and the correct recommendation for what the athletic department should decide regarding the potential renovation project. Project A Project B Year Cash Flow Cash Flow 0 ($750,000) ($400,000) 1 $200,000 $50,000 2 175,000 60,000 3 200,000 75,000 4 60,000 175,000 5 50,000 150,000