Calculating Payback Shire plc has the following mutually exclusive projects. Suppose Shires payback period cut-off is 2

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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  book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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