Question
Question: (Calculates required) (a) What is the payback period method, briefly explain? What is the payback criterion decision rule? (Around 150 words) (b) Swan fashions
Question: (Calculates required) (a) What is the payback period method, briefly explain? What is the payback criterion decision rule? (Around 150 words) (b) Swan fashions imposes a payback period method to its below international investment projects. If the company has the following two projects. According to payback, which project should be accepted, and which should be rejected?
| Year | Cash flow (A) | Cash flow (B) |
| 0 | -$75,000 | -$125,000 |
| 1 | $33,000 | $29,000 |
| 2 | $36,000 | $32,000 |
| 3 | $19,000 | $35,000 |
| 4 | $9000 | $240,000 |
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Financial Fitness Forever 5 Steps To More Money Less Risk And More Peace Of Mind
Authors: Paul Merriman, Richard Buck
1st Edition
0071786988,0071786996
