Question
1. Elsyian Fields ,Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusively projects. Project Hydrogen requires an
1. Elsyian Fields ,Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusively projects. Project Hydrogen requires an initial outlay of BD 25000, project Helium requires an initial outlay of BD35000. Using the expected cash inflows given for each project in the following table.
| Expected cash flow | ||
| Year | Hydrogen | Helium |
| 1 | BD6000 | BD7000 |
| 2 | BD6000 | BD8000 |
| 3 | BD8000 | BD8000 |
| 4 | BD4000 | BD6000 |
| 5 | BD4500 | BD5000 |
| 6 | BD2000 | BD6000 |
Required:
1. Determine the payback period of each project
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The Complete FinOps Handbook Essential Tools And Techniques For Financial Operations
Authors: Peter Bates
1st Edition
1922435546, 978-1922435545
