Question
Flyer Skimmer New Investment 424,000 380,000 Expected 3-year net cash flows Year 1 150,000 130,000 Year 2 160,000 130,000 Year 3 170,000 130,000 A company
| Flyer | Skimmer | |
|---|---|---|
| New Investment | 424,000 | 380,000 |
| Expected 3-year net cash flows | ||
| Year 1 | 150,000 | 130,000 |
| Year 2 | 160,000 | 130,000 |
| Year 3 | 170,000 | 130,000 |
A company produces two boat models flyer and skimmer. Both products are being considered for major investment next year. Relevant data above.
Use the payback period to evaluate these two investment companies.
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The Auditor Quo Vadis
Authors: Mervyn King, Linda De Beer
1st Edition
1138496774, 978-1138496774
