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the payback period project A&B? accept/ reject? Payback period Given the cash flow of two projects-A and B-in the following tablo, and using the paytack
the payback period project A&B? accept/ reject? Payback period Given the cash flow of two projects-A and B-in the following tablo, and using the paytack period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff period for recapturing the initial cash outhow? For payback period calculations, assume that the cash flow is equaly datributed over the year. \begin{tabular}{|l|r|r|} \hline Cash Flow & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } \\ \hline Cost & $15,000 & $110,000 \\ \hline Cash flow year 1 & $7,500 & $22,000 \\ \hline Cash flow year 2 & $7,500 & $11,000 \\ \hline Cash flow year 3 & $7,500 & $44,000 \\ \hline Cash flow year 4 & $7,500 & $33,000 \\ \hline Cash flow year 5 & $7,500 & $0 \\ \hline Cash flow year 6 & $7,500 & $0 \\ \hline \end{tabular}
the payback period project A&B?
accept/ reject?
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