Question
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
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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Sport Funding And Finance
Authors: Bob Stewart
2nd Edition
041583984X, 978-0415839846
