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4:15 Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 0 1231 -$ 60,000 24,500 32,000 26,500 12,500 Cash Flow (B) -$ 105,000 26,500 31,500 27,500 235,000 4 a. What is the payback period for each project? Note: 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? es

4:15 Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 0 1231 -$ 60,000 24,500 32,000 26,500 12,500 Cash Flow (B) -$ 105,000 26,500 31,500 27,500 235,000 4 a. What is the payback period for each project? Note: 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? es

FINANCIAL ACCOUNTING
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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4:15 Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 0 1231 -$ 60,000 24,500 32,000 26,500 12,500 Cash Flow (B) -$ 105,000 26,500 31,500 27,500 235,000 4 a. What is the payback period for each project? Note: 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? es
Transcribed Image Text:4:15 Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 0 1231 -$ 60,000 24,500 32,000 26,500 12,500 Cash Flow (B) -$ 105,000 26,500 31,500 27,500 235,000 4 a. What is the payback period for each project? Note: 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? es
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