Siva, Inc., imposes a payback cutoff of three years for its international investment projects. If the company

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Siva, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?

Year ________Cash Flow (A) _________Cash Flow (B)

0................... -$45,000 ...................... -$ 55,000

1...................... 16,000...........................13,000

2......................21,000...........................15,000

3......................15,000..........................24,000

4......................9,000.........................255,000

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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Nov 21, 2016 08:18 AM

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Siva, Inc., imposes a payback cutoff of three years for its international investment projects. If the company

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Fundamentals of Corporate Finance

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