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? Year0 (Investment) A ($) Project-1,000B ($) Project-$10,000C ($)Project-$5,00016004,0002000230030001000320020002000410020001000

The payback period refers to the time period that is required to recover the initial cost. With the…

Answered: Canada Golf Club (CGC) is considering…

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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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 ($) Project -1,000	B ($) Project -$10,000	C ($)Project -$5,000
1	600	4,000	2000
2	300	3000	1000
3	200	2000	2000
4	100	2000	1000

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