Using the payback method, determine which investment is better (use 2 decimal places in your calculation)....
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Using the payback method, determine which investment is better (use 2 decimal places in your calculation). Project A Initial investment = $25,000 Cash Flow: Yr 1 = $6,000 Cash Flow: Yr 2 = $4,000 Cash Flow: Yr 3 = $5,000 Cash Flow: Yr 4 - $5,000 Cash Flow: Yr 5 = $5,000 Project B Initial investment = $700,000 Cash Flow: Yr 1 = ($5,000) Cash Flow: Yr 2 = ($2,500) Cash Flow: Yr 3 = $700,000 Cash Flow: Yr 4 = $25,000 Cash Flow: Yr 5 - $60,000 Using the payback method, determine which investment is better (use 2 decimal places in your calculation). Project A Initial investment = $25,000 Cash Flow: Yr 1 = $6,000 Cash Flow: Yr 2 = $4,000 Cash Flow: Yr 3 = $5,000 Cash Flow: Yr 4 - $5,000 Cash Flow: Yr 5 = $5,000 Project B Initial investment = $700,000 Cash Flow: Yr 1 = ($5,000) Cash Flow: Yr 2 = ($2,500) Cash Flow: Yr 3 = $700,000 Cash Flow: Yr 4 = $25,000 Cash Flow: Yr 5 - $60,000
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Cumulative cash flow Year 1 6000 Year 2 6000 4000 10000 Yea... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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