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Project A Project B Project C Initial Outlay (1,000) (10,000) (5,000) Inflow Year 1 600 5,000 1,000 Inflow Year 2 300 3,000 1,000 Inflow Year
| Project A | Project B | Project C | |
| Initial Outlay | (1,000) | (10,000) | (5,000) |
| Inflow Year 1 | 600 | 5,000 | 1,000 |
| Inflow Year 2 | 300 | 3,000 | 1,000 |
| Inflow Year 3 | 100 | 1,000 | 2,000 |
| Inflow Year 4 | 100 | 1,000 | 1,000 |
| Inflow Year 5 | 500 | 3,000 | 2,000 |
Calculate the payback for each project. If the company requires a 3 year payback, which project would be accepted?
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
