Question
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash
Kara, Incorporated, 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 | $ 53,000 | $ 98,000 |
| 1 | 21,000 | 23,000 |
| 2 | 27,800 | 28,000 |
| 3 | 23,000 | 31,000 |
| 4 | 9,000 | 242,000 |
What is the payback period for each project?
Which, if either, of the projects should the company accept?
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The Financial Crisis Implications For Research And Teaching
Authors: Ted Azarmi, Wolfgang Amann
1st Edition
3319205870, 978-3319205878
