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Payback period. Given the cash flow of two projects-A and Band using the payback period decision model, which project(s) do you accept and which project(s)
Payback period. Given the cash flow of two projects-A and Band using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a three-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. Cash Flow B Cost $15,000 $95,000 Cash flow year 1 $6,000 $19,000 Cash flow year 2 $6,000 $9,500 Cash flow year 3 $6,000 $38,000 Cash flow year 4 $6,000 $28,500 Cash flow year 5 $6,000 $0 Cash flow year 6 $6,000 $0 What is the payback period for project A? years (Round to one decimal place.) With a three-year cutoff period for recapturing the initial cash outflow, project A would be (Select from the drop-down menu.) What is the payback period for project B? years (Round to one decimal place.) rejected accepted (Select from the drop-down menu.) With a three-year cutoff period for recapturing the initial cash outflow, project B would be
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