Question
Payback period. What are the payback periods of projects E andF? Assume all the cash flow is evenly spread throughout the year. If the cutoff
Payback period. What are the payback periods of projects E andF? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is threeyears, whichproject(s) do youaccept?
| Cash Flow | E | F |
| Cost | 42000 | 110000 |
| Cash flow year 1 | 9333 | 11000 |
| Cash flow year 2 | 9333 | 22000 |
| Cash flow year 3 | 9333 | 33000 |
| Cash flow year 4 | 9333 | 44000 |
| Cash flow year 5 | 9333 | 0 |
| Cash flow year 6 | 9333 | 0 |
|
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
