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McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year 0 1 2
McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year 0 1 2 3 4 Cash Flow (A) -$ 75,600 29,000 34,000 27,000 14,000 Cash Flow (B) -$ 88,000 21,000 24,000 32,000 236,000 What is the payback period for both projects? (Round the final answers to 2 decimal places.) Payback period years Project A Project B years Which project should the company accept? Project A O Project B
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