Question
Problem 9-3 Calculating Payback [LO2] Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow
Problem 9-3 Calculating Payback [LO2]
| Siva, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 68,000 | $ | 78,000 | |||
| 1 | 27,000 | 19,000 | |||||
| 2 | 36,000 | 22,000 | |||||
| 3 | 25,000 | 34,000 | |||||
| 4 | 12,000 | 238,000 | |||||
| What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) |
| Payback period | ||
| Project A | years | |
| Project B | years | |
| Which project should the company accept? | ||||
|
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International Finance For Dummies
Authors: Ayse Evrensel
1st Edition
111852389X, 978-1118523896
