Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: Year 1 $150,000 Year 2 140,000 Year 3 110,000 Year 4 150,000 Year 5 50,000 $600,000 Determine the cash payback period for each proposal. Round your answers to two decimal places. Proposal A: fill in the blank 1 years Proposal B: fill in the blank 2 years
Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: Year 1 $150,000 Year 2 140,000 Year 3 110,000 Year 4 150,000 Year 5 50,000 $600,000 Determine the cash payback period for each proposal. Round your answers to two decimal places. Proposal A: fill in the blank 1 years Proposal B: fill in the blank 2 years
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net
Year 1 | $150,000 | |
Year 2 | 140,000 | |
Year 3 | 110,000 | |
Year 4 | 150,000 | |
Year 5 | 50,000 | |
$600,000 |
Determine the cash payback period for each proposal. Round your answers to two decimal places.
Proposal A: | fill in the blank 1 years |
Proposal B: | fill in the blank 2 years |
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