Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 01234 -$40,000 14,000 18,000 17,000 11,000 -$ 55,000 11,000 13,000 16,000 255,000 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? O Project A Project B
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 01234 -$40,000 14,000 18,000 17,000 11,000 -$ 55,000 11,000 13,000 16,000 255,000 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? O Project A Project B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Kara, Incorporated, imposes a payback cutoff of three years for its international
investment projects.
Year Cash Flow (A)
Cash Flow (B)
01234
-$40,000
14,000
18,000
17,000
11,000
-$ 55,000
11,000
13,000
16,000
255,000
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?
O Project A
Project B
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