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Parker Propulsion Company is analyzing a new project that has a projected initial cost of $175,000. The projected cash inflows for the four-year life of
Parker Propulsion Company is analyzing a new project that has a projected initial cost of $175,000. The projected cash inflows for the four-year life of the project are $56,400, $61,800, $72,000 and $75,000 respectively. Parker requires a payback period of 2.5 years or less on all its projects. Based on the information gathered, this proposed project has a payback period of _________ years and Parker should ____________ the project.
a.) 2.79; accept | ||
b.) 3.79; accept | ||
c.) 2.46; reject | ||
d.) 2.79; reject | ||
e.) 3.79; reject |
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