Question
McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Year Cash Flow (A)
McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 70,400 | $ | 82,000 | |||
| 1 | 27,000 | 19,000 | |||||
| 2 | 32,000 | 22,000 | |||||
| 3 | 25,000 | 30,000 | |||||
| 4 | 12,000 | 234,000 | |||||
What is the payback period for both projects? (Round the final answers to 2 decimal places.)
| Payback period | |
| Project A | years |
| Project B | years |
Which project should the company accept?
multiple choice
-
Project A
-
Project B
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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