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 -$5,000 1 -2,000 -6,000 -2,000 2 800 4,000 5,000 600 3,000 5,000 4 600 2,000 5,000 400 2,000 2,000
A company is considering three independent projects for October 2021. The three projects are project X, project Y and project Z. Given the following cash flow information, calculate the payback period for each. If the company requires a 3-year payback before an investment can be made, which project(s) would be accepted? Project X ($) Project Y ($) Project Z ($) Year O (Investment) -2,000 -$10,000 -$5,000 1 -2,000 -6,000 -2,000 2 800 4,000 5,000 600 3,000 5,000 4 600 2,000 5,000 400 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
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