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Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. Suppose the company has the following two projects available. Project
Buy Coastal, Inc., imposes a payback cutoff of three 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 (Click to select)rejectaccept project A and (Click to select)rejectaccept project B. (Round your answers to 3 decimal places. (e.g., 32.162)) |
Year | Cash Flow (A) | Cash Flow (B) |
0 | $40,000 | $60,000 |
1 | 19,000 | 14,000 |
2 | 25,000 | 17,000 |
3 | 18,000 | 24,000 |
4 | 6,000 | 270,000 |
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