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Score: 0.25 of 1 pt 1 of 9 (7 complete) HW Score: 47.28%, 4.25 of 9 pts WP9-1 (similar to) 3 Question Help Payback period.
Score: 0.25 of 1 pt 1 of 9 (7 complete) HW Score: 47.28%, 4.25 of 9 pts WP9-1 (similar to) 3 Question Help Payback period. Given the cash flow of two projectsA and Bin the following table, and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? 2.5 years (Round to one decimal place.) With a 3-year cutoff period for recapturing the initial cash outflow, project A would be accepted (Select from the drop-down menu.) What is the payback period for project B? 4.0 years (Round to one decimal place.) With a 3-year cutoff period for recapturing the initial cash outflow, project B would be rejected (Select from the drop-down menu.) - X Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 A $14,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 B $105,000 $10,500 $21,000 $31,500 $42,000 $0 $0 Print Done
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