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Using Excel Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires
Using Excel
Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires a three-year payback before an investment can be accepted, which project(s) would be accepted?
Project D | Project E | Project F | |
Cost | 205,000.00 | 179,000.00 | 110,000.00 |
Inflow year 1 | 53,000.00 | 51,000.00 | 25,000.00 |
Inflow year 2 | 50,000.00 | 87,000.00 | 55,000.00 |
Inflow year 3 | 48,000.00 | 41,000.00 | 21,000.00 |
Inflow year 4 | 30,000.00 | 52,000.00 | 9,000.00 |
Inflow year 5 | 24,000.00 | 40,000.00 | 35,000.00 |
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