Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Cash Flow Year Cash Flow (B) (A) -$62,000 24,000 30,000 22,000 9,000 -$ 72,000 16,000 19,000 28,000 232,000 1 2 3. 4 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which project should the company accept? O Project B O Project A

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
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Bronco, Inc., imposes a payback cutoff of three years for its international
investment projects.
Cash Flow
Year
Cash Flow (B)
(A)
-$62,000
24,000
30,000
22,000
9,000
-$ 72,000
16,000
19,000
28,000
232,000
4
What is the payback period for both projects? (Round your answers to 2
decimal places, e.g., 32.16.)
Project A
years
Project B
years
Which project should the company accept?
O Project B
O Project A
o123
Transcribed Image Text:Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Cash Flow Year Cash Flow (B) (A) -$62,000 24,000 30,000 22,000 9,000 -$ 72,000 16,000 19,000 28,000 232,000 4 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which project should the company accept? O Project B O Project A o123
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