L81234567689101112131915Avix ✓ fxBCDChapter 9- Assignment 1.4Problem 1: Calculating PaybackYear Cash Flow (A) Cash Flow (B)0S1234SS$Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has twointernational projects with the following projected cash flows:$199$E(52,000) $17,000 $19,000 $17,000 $11,000 $F(55,000)14,00016,00022,000285,000GHEditinga) What is the precise payback period (in decimal form) for these two projects?b) Using payback period rules, should it accept either of them?Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.

PAYBACK PERIOD Payback Period is one of the Important Capital Budgeting Technique. It is the most…

18 1 2 3 4 5 6 7 8 9 10 11 12 13 19 15 A B IX ✓ fx C Chapter 9-Assignment 1.4 Problem 1: Calculating Payback D 2 3 Year Cash Flow (A) Cash Flow (B) 0 (55,000) 1 14,000 16,000 $ $ $ $ E Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two international projects with the following projected cash flows: (52,000) $ 17,000 $ 19,000 $ 17,000 $ 11,000 $ F 22,000 285,000 G H Cons a) What is the precise payback period (in decimal form) for these two projects? b) Using payback period rules, should it accept either of them? Create your Original Solution Below- Be sure to show all calculations and clearly indicate answers.

18 1 2 3 4 5 6 7 8 9 10 11 12 13 19 15 A B IX ✓ fx C Chapter 9-Assignment 1.4 Problem 1: Calculating Payback D 2 3 Year Cash Flow (A) Cash Flow (B) 0 (55,000) 1 14,000 16,000 $ $ $ $ E Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two international projects with the following projected cash flows: (52,000) $ 17,000 $ 19,000 $ 17,000 $ 11,000 $ F 22,000 285,000 G H Cons a) What is the precise payback period (in decimal form) for these two projects? b) Using payback period rules, should it accept either of them? Create your Original Solution Below- Be sure to show all calculations and clearly indicate answers.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

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Chapter 9- Assignment 1.4
Problem 1: Calculating Payback
Year Cash Flow (A) Cash Flow (B)
0
S
1234
SS
$
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two
international projects with the following projected cash flows:
$
199
$
E
(52,000) $
17,000 $
19,000 $
17,000 $
11,000 $
F
(55,000)
14,000
16,000
22,000
285,000
G
H
Editing
a) What is the precise payback period (in decimal form) for these two projects?
b) Using payback period rules, should it accept either of them?
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.

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