Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $32,000; project Helium requires an initial outlay of $33,000. Using the expected cash inflows given for each project in the following table,, calculate each project's payback period. Which project meets Elysian's standards?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive
projects. Project Hydrogen requires an initial outlay of $32,000; project Helium requires an initial outlay of $33,000. Using
the expected cash inflows given for each project in the following table, calculate each project's payback period. Which
project meets Elysian's standards?
The payback period of project Hydrogen is years. (Round to two decimal places.)
Data table
(Click on the icon here
into a spreadsheet.)
Year
1
23
4
5
6
in order to copy the contents of the data table below
Expected cash inflows
Helium
$6,000
$6,500
$8,000
$5,500
$4,500
$4,500
Hydrogen
$7,000
$6,500
$8,000
$5,000
$3,500
$3,000
Print
Done
X
Transcribed Image Text:Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $32,000; project Helium requires an initial outlay of $33,000. Using the expected cash inflows given for each project in the following table, calculate each project's payback period. Which project meets Elysian's standards? The payback period of project Hydrogen is years. (Round to two decimal places.) Data table (Click on the icon here into a spreadsheet.) Year 1 23 4 5 6 in order to copy the contents of the data table below Expected cash inflows Helium $6,000 $6,500 $8,000 $5,500 $4,500 $4,500 Hydrogen $7,000 $6,500 $8,000 $5,000 $3,500 $3,000 Print Done X
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