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Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year 1 2 3 4 Cash Flow (A) Cash Flow (B)

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Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year 1 2 3 4 Cash Flow (A) Cash Flow (B) -$ 67,000 --$ 77,000 26,500 18,500 35,000 21.500 24,500 33.000 11,500 237.000 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g. 32.16.) years Project A Project B years Which project should the company accept? A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 $28,200 1 12,200 2 15,200 3 11,200 What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) NPV At a required return of 10 percent, should the firm accept this project? O No Yes What is the NPV for the project if the required return is 26 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) ces NPV At a required return of 26 percent should the firm accept this project? Yes No

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