Question
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 $ 54,000 $
| Siva, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | $ | 54,000 | $ | 64,000 | |||
| 1 | 20,000 | 12,000 | |||||
| 2 | 22,000 | 15,000 | |||||
| 3 | 18,000 | 20,000 | |||||
| 4 | 5,000 | 224,000 | |||||
| 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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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
