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? Project A ($) Project B ($) Project C ($) Year O (Investment) -2,000 -$10,000 -$5,000 1 -2,000 -6,000 -12,000 2 800 4,000 5,000 600 3,000 5,000 4 600 2,000 5,000 Answer 400 2,000 2,000 Payback Period Project A =
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? Project A ($) Project B ($) Project C ($) Year O (Investment) -2,000 -$10,000 -$5,000 1 -2,000 -6,000 -12,000 2 800 4,000 5,000 600 3,000 5,000 4 600 2,000 5,000 Answer 400 2,000 2,000 Payback Period Project A =
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and
project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an
investment can be made, which project(s) would be accepted?
Project A ($) Project B ($) Project C
($)
Year
O (Investment)
-2,000
-$10,000
-$5,000
1
-2,000
-12,000
-6,000
4,000
2
800
5,000
3
600
3,000
5,000
600
2,000
5,000
Answer
5
400
2,000
2,000
Payback Period Project A =
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