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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 | $ | 63,000 | $ | 108,000 |
| 1 | 26,000 | 28,000 | ||
| 2 | 33,800 | 33,000 | ||
| 3 | 28,000 | 26,000 | ||
| 4 | 14,000 | 232,000 | ||
| Requirement 1: |
| What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Payback period | |
| Project A | years |
| Project B | years |
| Requirement 2: |
| Should it accept either of them? |
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Public Finance Lessons From The Past And Effects On The Future
Authors: Miguel-Angel Galindo Martin
1st Edition
1629481491, 978-1629481494
