Calculating Payback Shire plc has the following mutually exclusive projects. Suppose Shires payback period cut-off is 2
Question:
Calculating Payback Shire plc has the following mutually exclusive projects. Suppose Shire’s payback period cut-off is 2 years. Which of these two projects should be chosen?
Year Cash flow
(A) (€)
Cash flow
(B) (€)
0 –14,000 –6,000 1 4,000 4,500 2 5,500 2,200 3 8,000 200
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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