Question
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects Year Cash Flow (A) Cash Flow (B) 0 $ 66,000
| Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 66,000 | $ | 76,000 | |||
| 1 | 26,000 | 18,000 | |||||
| 2 | 34,000 | 21,000 | |||||
| 3 | 24,000 | 32,000 | |||||
| 4 | 11,000 | 236,000 | |||||
| What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Payback period | ||
| Project A | years | |
| Project B | years | |
| Which project should the company accept? | ||||
|
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The Business Credit Handbook
Authors: Mr. Reid A. Nunn
1st Edition
1500542725, 978-1500542726
