Question
Calculating Payback Kara, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available,
Calculating Payback
Kara, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?
Year
0
1
2
3
4
Cash Flow (A)
-$40,000
$14,000
$18,000
$17,000
$11,000
Cash Flow (B)
-$55,000
$11,000
$13,000
$16,000
$255,000
*USING EXCEL*
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
