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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
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
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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
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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