Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? Year 0 (Investment) A ($) Project -2,000 B ($) Project -$10,000 C ($)Project -$5,000 1 -2,000 -6,000 -2,000 2 800 4000 5000 3 600 3000 5000 4 600 2000 5000 5 400 2000 2000
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? Year 0 (Investment) A ($) Project -2,000 B ($) Project -$10,000 C ($)Project -$5,000 1 -2,000 -6,000 -2,000 2 800 4000 5000 3 600 3000 5000 4 600 2000 5000 5 400 2000 2000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
|
Year 0 (Investment)
|
A ($) Project -2,000 |
B ($) Project -$10,000 |
C ($)Project -$5,000 |
|
1 |
-2,000 |
-6,000 |
-2,000 |
|
2 |
800 |
4000 |
5000 |
|
3 |
600 |
3000 |
5000 |
|
4 |
600 |
2000 |
5000 |
|
5 |
400 |
2000 |
2000 |
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