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 | $ | 65,200 | $ | 76,000 | |||
| 1 | 25,000 | 17,000 | |||||
| 2 | 30,000 | 20,000 | |||||
| 3 | 23,000 | 28,000 | |||||
| 4 | 10,000 | 232,000 | |||||
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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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
