Question
PROJECT A PROJECT B PROJECT C Copy to Clipboard + Open in Excel + Initial Outlay $950 $11,000 $5,500 Inflow year 1 500 6,000 1,000
PROJECT A | PROJECT B | PROJECT C |
| ||||||||||||||
Initial Outlay | $950 | $11,000 | $5,500 | ||||||||||||||
Inflow year 1 | 500 | 6,000 | 1,000 | ||||||||||||||
Inflow year 2 | 200 | 3,000 | 1,000 | ||||||||||||||
Inflow year 3 | 300 | 3,000 | 4,000 | ||||||||||||||
Inflow year 4 | 100 | 3,000 | 4,000 | ||||||||||||||
Inflow year 5 | 400 | 3,000 | 4,000 |
payback period
calculations)
You are considering three independent projects: project A, project B, and project C. Given the cash flow information in the window
, calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?
What is the payback period of project A?
nothing
years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should
reject
accept
project A because its payback period is
less than or equal to
greater than
the maximum acceptable payback period.(Select from the drop-down menus.)
What is the payback period of project B?
nothing
years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should
accept
reject
project B because its payback period is
less than or equal to
greater than
the maximum acceptable payback period.(Select from the drop-down menus.)
What is the payback period of project C?
nothing
years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should
accept
reject
project C because its payback period is
less than or equal to
greater than
the maximum acceptable payback period.(Select from the drop-down menus.)
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