Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, . and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-ye for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? ] years (Round to two decimal places.) - X Data table With a 3-year cutoff period for recapturing the initial cash outflow, project A would be What is the payback period for project B? (Click on the following icon = in order to copy its contents into a spreadsheet.) ] years (Round to two decimal places.) rejected | Cash Flow B D With a 3-year cutoff period for recapturing the initial cash outflow, project B would be Cost $10,000 $25,000 $45,000 $100.000 accepted Cash flow year 1 $4,000 $2,000 $10,000 $40,000 What is the payback period for project C? Cash flow year 2 $4,000 $8,000 $15,000 $30,000 Cash flow year 3 $4,000 $14,000 $20,000 $20,000 ] years (Round to two decimal places.) Cash flow year 4 $4,000 $20,000 $4,000 $10,000 Cash flow year 5 $4,000 $26,000 $15,000 $0 With a 3-year cutoff period for recapturing the initial cash outflow, project C would be Cash flow year 6 $4,000 $32,000 $10,000 $0 What is the payback period for project D? ] years (Round to two decimal places.) Print Done With a 3-year cutoff period for recapturing the initial cash outflow, project D would be
Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, . and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-ye for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? ] years (Round to two decimal places.) - X Data table With a 3-year cutoff period for recapturing the initial cash outflow, project A would be What is the payback period for project B? (Click on the following icon = in order to copy its contents into a spreadsheet.) ] years (Round to two decimal places.) rejected | Cash Flow B D With a 3-year cutoff period for recapturing the initial cash outflow, project B would be Cost $10,000 $25,000 $45,000 $100.000 accepted Cash flow year 1 $4,000 $2,000 $10,000 $40,000 What is the payback period for project C? Cash flow year 2 $4,000 $8,000 $15,000 $30,000 Cash flow year 3 $4,000 $14,000 $20,000 $20,000 ] years (Round to two decimal places.) Cash flow year 4 $4,000 $20,000 $4,000 $10,000 Cash flow year 5 $4,000 $26,000 $15,000 $0 With a 3-year cutoff period for recapturing the initial cash outflow, project C would be Cash flow year 6 $4,000 $32,000 $10,000 $0 What is the payback period for project D? ] years (Round to two decimal places.) Print Done With a 3-year cutoff period for recapturing the initial cash outflow, project D would be
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:Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, , and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-year cutoff period
for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year.
.....
What is the payback period for project A?
years (Round to two decimal places.)
Data table
With a 3-year cutoff period for recapturing the initial cash outflow, project A would be
What is the payback period for project B?
(Click on the following icon
in order to copy its contents into a spreadsheet.)
years (Round to two decimal places.)
rejected
Cash Flow
B
D
With a 3-year cutoff period for recapturing the initial cash outflow, project B would be
Cost
$10,000
$25,000
$45,000
$100,000
ассepted
Cash flow year 1
$4,000
$2,000
$10,000
$40,000
What is the payback period for project C?
Cash flow year 2
$4,000
$8,000
$15,000
$30,000
Cash flow year 3
$4,000
$14,000
$20,000
$20,000
years (Round to two decimal places.)
Cash flow year 4
$4,000
$20,000
$4,000
$10,000
Cash flow year 5
$4,000
$26,000
$15,000
$0
With a 3-year cutoff period for recapturing the initial cash outflow, project C would be
Cash flow
year
$4,000
$32,000
$10,000
$0
What is the payback period for project D?
|years (Round to two decimal places.)
Print
Done
With a 3-year cutoff period for recapturing the initial cash outflow, project D would be
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