Question
Buy Coastal, Inc., imposes a payback cutoff of 2 years for its international investment projects. Suppose the company has the following two projects available. Project
Buy Coastal, Inc., imposes a payback cutoff of 2 years for its international investment projects. Suppose the company has the following two projects available. Project A has payback period of years, while project B has a payback period of years. Therefore, it should accept project A and reject project B. (Round your answers to 3 decimal places. (e.g., 32.162))
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | ?$40,000 | ?$68,000 |
| 1 | 22,000 | 11,000 |
| 2 | 30,000 | 19,000 |
| 3 | 14,000 | 29,000 |
| 4 | 5,000 | 271,000 |
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Finance And Democracy Towards A Sustainable Financial System
Authors: Alessandro Vercelli
1st Edition
3030279111, 978-3030279110
