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Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inflows of $1,680,000. Proposal A is expected to provide an annual net cash inflow of $280,000, while the annual net cash inflows for Proposal B are as follows: Year 1 $350,000 Year 2 $315,000 Year 3 $280,000 Year 4 $280,000 Year 5 $245,000 Year 6 $210,000 Determine the cash payback period for each proposal. Round your answers to two decimal places.   Cash Payback Period Proposal A fill in the blank 1 years Proposal B fill in the blank 2 years

Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inflows of $1,680,000. Proposal A is expected to provide an annual net cash inflow of $280,000, while the annual net cash inflows for Proposal B are as follows: Year 1 $350,000 Year 2 $315,000 Year 3 $280,000 Year 4 $280,000 Year 5 $245,000 Year 6 $210,000 Determine the cash payback period for each proposal. Round your answers to two decimal places.   Cash Payback Period Proposal A fill in the blank 1 years Proposal B fill in the blank 2 years

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inflows of $1,680,000. Proposal A is expected to provide an annual net cash inflow of $280,000, while the annual net cash inflows for Proposal B are as follows:

    Year 1 $350,000
    Year 2 $315,000
    Year 3 $280,000
    Year 4 $280,000
    Year 5 $245,000
    Year 6 $210,000

    Determine the cash payback period for each proposal. Round your answers to two decimal places.

      Cash Payback Period
    Proposal A fill in the blank 1 years
    Proposal B fill in the blank 2 years
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