Question
Kiffin Co. is analyzing two projects for the future. Assume that only one project can be selected. Project Project X Y Cost of machine $77,000
Kiffin Co. is analyzing two projects for the future. Assume that only one project can be selected. Project Project X Y Cost of machine $77,000 $55,000 Net cash flow: Year 1 28,000 2,000 Year 2 28,000 25,000 Year 3 28,000 25,000 Year 4 0 20,000 If the company is using the payback period method and it requires a payback of three years or less, which project should be selected? Chapter & Fash If the company is using the payback period method and it requires a payback of three years or less, which project should be selected? Project X. O Neither X nor Y is an acceptable project. Project Y. O Both X and Y are acceptable projects. O Project Y because it has a lower initial investment
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