Question
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 66,000 $
| Siva, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 66,000 | $ | 76,000 | |||
| 1 | 26,000 | 18,000 | |||||
| 2 | 34,000 | 21,000 | |||||
| 3 | 24,000 | 32,000 | |||||
| 4 | 11,000 | 236,000 | |||||
| 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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Managing Finance
Authors: CMI Books
1st Edition
1781252181, 978-1781252185
