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Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 63,000 $
| Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) |
|---|---|---|
| 0 | $ 63,000 | $ 73,000 |
| 1 | 24,500 | 16,500 |
| 2 | 31,000 | 19,500 |
| 3 | 22,500 | 29,000 |
| 4 | 9,500 | 233,000 |
| What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Which project should the company accept? |
| multiple choice Project A Correct Project B |
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
