Question
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
| Year | Project A ($) | Project B ($) | Project C ($) |
| 0 (Investment) | -2,000 | -$10,000 | -$5,000 |
| 1 | -2,000 | -6,000 | -2,000 |
| 2 | 800 | 4,000 | 5,000 |
| 3 | 600 | 3,000 | 5,000 |
| 4 | 600 | 2,000 | 5,000 |
| 5 | 400 | 2,000 | 2,000 |
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
10th Edition
0131457349, 978-0131457348
