Question
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 62,000 $
| Siva, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 62,000 | $ | 72,000 | |||
| 1 | 24,000 | 16,000 | |||||
| 2 | 30,000 | 19,000 | |||||
| 3 | 22,000 | 28,000 | |||||
| 4 | 9,000 | 232,000 | |||||
| What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16. |
| Payback period | ||
| Project A | years | |
| Project B | years | |
| Which project should the company accept? | ||||
|
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Adventure Capitalist The Ultimate Road Trip
Authors: Jim Rogers
1st Edition
0375509127, 978-0375509124
