Question
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 50,000
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects.
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 50,000 | $ | 60,000 | |||
| 1 | 18,000 | 10,000 | |||||
| 2 | 18,000 | 13,000 | |||||
| 3 | 16,000 | 16,000 | |||||
| 4 | 3,000 | 220,000 | |||||
| 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? Project A or Project B? | ||||
| |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
1st Edition
0987507109, 978-0987507105
