A company is considering three independent projects for October 2021. The three projects are project X, project Y and project Z. Given the following cash flow information, calculate the payback period for each. If the company requires a 3-year payback before an investment can be made, which project(s) would be accepted? Project X ($) Project Y ($) Project Z ($) Year O (Investment) -2,000 -$10,000 -$5,000 -2,000 -6,000 -2,000 2 800 4,000 5,000 3 600 3,000 5,000 4 600 2,000 5,000 5 400 2,000 2,000
A company is considering three independent projects for October 2021. The three projects are project X, project Y and project Z. Given the following cash flow information, calculate the payback period for each. If the company requires a 3-year payback before an investment can be made, which project(s) would be accepted? Project X ($) Project Y ($) Project Z ($) Year O (Investment) -2,000 -$10,000 -$5,000 -2,000 -6,000 -2,000 2 800 4,000 5,000 3 600 3,000 5,000 4 600 2,000 5,000 5 400 2,000 2,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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do not use excel formulas. use financial calculator and show all workings.
![company is considering three independent projects for October 2021. The three projects are
project X, project Y and project Z. Given the following cash flow information, calculate the
payback period for each. If the company requires a 3-year payback before an investment can be
made, which project(s) would be accepted?
Year
Project X ($)
Project Y ($)
Project Z ($)
O (Investment)
-2,000
-$10,000
-$5,000
1.
-2,000
-6,000
-2,000
800
4,000
5,000
3
600
3,000
5,000
4
600
2,000
5,000
400
2,000
2,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7295e88-6129-40b3-8633-b93adcd7c23b%2F0d0300bd-eacf-4e5c-9f7d-35ff5a1226c9%2Fuqmaldi_processed.png&w=3840&q=75)
Transcribed Image Text:company is considering three independent projects for October 2021. The three projects are
project X, project Y and project Z. Given the following cash flow information, calculate the
payback period for each. If the company requires a 3-year payback before an investment can be
made, which project(s) would be accepted?
Year
Project X ($)
Project Y ($)
Project Z ($)
O (Investment)
-2,000
-$10,000
-$5,000
1.
-2,000
-6,000
-2,000
800
4,000
5,000
3
600
3,000
5,000
4
600
2,000
5,000
400
2,000
2,000
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