Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 01234 -$ 53,000 -$ 63,000 19,500 11,500 21,000 14,500 17,500 19,000 4,500 223,000
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 01234 -$ 53,000 -$ 63,000 19,500 11,500 21,000 14,500 17,500 19,000 4,500 223,000
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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Question
![Kara, Incorporated, imposes a payback cutoff of three years for its international
investment projects.
Cash Flow (B)
Year
Cash Flow (A)
0
-$ 53,000
-$ 63,000
1234
19,500
11,500
2
21,000
14,500
17,500
19,000
4,500
223,000
What is the payback period for both projects? (Do not round intermediate calculations
and round your answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
years
years
Which project should the company accept?
Project A
O Project B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fae9b1b-b51d-45f0-81bb-a183c8da13e2%2F04e651e6-570a-48bb-a990-474c58c57bed%2Fzqf6ahs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kara, Incorporated, imposes a payback cutoff of three years for its international
investment projects.
Cash Flow (B)
Year
Cash Flow (A)
0
-$ 53,000
-$ 63,000
1234
19,500
11,500
2
21,000
14,500
17,500
19,000
4,500
223,000
What is the payback period for both projects? (Do not round intermediate calculations
and round your answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
years
years
Which project should the company accept?
Project A
O Project B
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