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Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year 0
Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year 0 1. 2 3 Cash Flow (A) -$75,000 33,000 36,000 19,000 9,000 Cash Flow (B) -$ 125,000 29,000 32,000 35,000 240,000 AWN a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Which, if either, of the projects should the company accept? years a. Project A Project B b. Project acceptance years
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