Question
E11-12 Ranking Capital Investment Projects Using Different Criteria [LO 11-2, 11-3, 11-5, 11-6] Jill Harrington, a manager at Jennings Company, is considering several potential capital
E11-12 Ranking Capital Investment Projects Using Different Criteria [LO 11-2, 11-3, 11-5, 11-6]
Jill Harrington, a manager at Jennings Company, is considering several potential capital investment projects. Data on these projects follow:
| Project X | Project Y | Project Z | ||||
| Initial investment | $40,000 | $20,000 | $50,000 | |||
| Annual cash inflows | 25,000 | 10,000 | 25,400 | |||
| PV of cash inflows | 45,000 | 33,000 | 70,000 | |||
Required: 1. Compute the payback period for each project and rank order them based on this criterion. (Round your answers to 2 decimal places.)
| Payback Period | Rank | |
| Project X | ||
| Project Y | ||
| Project Z |
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Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
6th Edition
0273039148, 9780273039143
