Question
Question # 1 Atlantic Engineering Incorporation is considering the following Project options. Given are the cash flows of the four projects, A, B, C, and
Question # 1
Atlantic Engineering Incorporation is considering the following Project options. Given are the cash flows of the four projects, A, B, C, and D, using the Payback Period decision model, which projects do you accept and which projects do you reject with a three year cut-off period for recapturing the initial cash outflow?
| Projects | A | B | C | D |
| Cost | $10,000 | $25,000 | $45,000 | $100,000 |
| Cash Flow Year One | $4,000 | $2,000 | $10,000 | $40,000 |
| Cash Flow Year Two | $4,000 | $8,000 | $15,000 | $30,000 |
| Cash Flow Year Three | $4,000 | $14,000 | $20,000 | $20,000 |
| Cash Flow Year Four | $4,000 | $20,000 | $20,000 | $10,000 |
| Cash Flow year Five | $4,000 | $26,000 | $15,000 | $0 |
| Cash Flow Year Six | $4,000 | $32,000 | $10,000 | $0 |
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Financial Trading And Investing
Authors: John Teall
1st Edition
0123918804, 978-0123918802
