Question
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 70,000 $
| Siva, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 70,000 | $ | 80,000 | |||
| 1 | 28,000 | 20,000 | |||||
| 2 | 38,000 | 23,000 | |||||
| 3 | 26,000 | 36,000 | |||||
| 4 | 13,000 | 240,000 | |||||
| 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? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
