1 1. Calculating Payback. What is the payback period for the following set of cash flows? Basic (Questions 1-22) Year 0 1 2 3 4 Cash Flow -$3,400 1.200 1,500 900 700 258 PART 5 Capital Budgeting 2. Calculating Payback. An investment project provides cash inflows of $760 per year for eight years. What is the project payback period if the initial cost is $3,400? What if the initial cost is $4,450? What if it is $6,800? 3. Calculating Payback. Offshore Drilling Products, 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? AR Year 0 Cash Flow (A) $35,000 13,000 19,000 14,000 8,000 Cash Flow (B) -$ 95,000 18,000 27,000 38,000 225,000 2 3 m/rwi 4