Question
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 64,000 $
| Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) |
|---|---|---|
| 0 | $ 64,000 | $ 74,000 |
| 1 | 25,000 | 17,000 |
| 2 | 32,000 | 20,000 |
| 3 | 23,000 | 30,000 |
| 4 | 10,000 | 234,000 |
| 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 B Project A |
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Authors: Greg Middleton
1st Edition
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