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Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year
Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.
Year | Cash Flow A | Cash Flow B | ||
0 | $ | 48,000 | $ | 93,000 |
1 | 18,500 | 20,500 | ||
2 | 24,800 | 25,500 | ||
3 | 20,500 | 33,500 | ||
4 | 6,500 | 247,000 | ||
What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Payback period | |
Project A | years |
Project B | years |
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