Requirements 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. 2. Are there other factors that should be considered in addition to the payback period? Requirement 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. First, determine the payback period of each project. (Enter the payback period as a numeral.) Payback period in Project years Project L Project M Project N years Data Table years Гyears Net Cash Inflows Project L Project M Project N Year Annual Accumulated Annual Accumulated Annual Accumulated Year 1 $ 100,000 $ 100.000|$ 50.000 $ 50.000|$ 200,000 $ 200,000 Year 2 100,000 200,000 150,000 200,000 200,000 400,000 Year 3 100,000 300,000 200,000 400,000 Year 4 100,000 400,000 250,000 650,000 Year 5 100,000 500,000 300,000 950,000 Year 6 100,000 600,000 Year 7 100,000 700,000 Year 8 100,000 800,000

Requirements 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. 2. Are there other factors that should be considered in addition to the payback period? Requirement 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. First, determine the payback period of each project. (Enter the payback period as a numeral.) Payback period in Project years Project L Project M Project N years Data Table years Гyears Net Cash Inflows Project L Project M Project N Year Annual Accumulated Annual Accumulated Annual Accumulated Year 1 $ 100,000 $ 100.000|$ 50.000 $ 50.000|$ 200,000 $ 200,000 Year 2 100,000 200,000 150,000 200,000 200,000 400,000 Year 3 100,000 300,000 200,000 400,000 Year 4 100,000 400,000 250,000 650,000 Year 5 100,000 500,000 300,000 950,000 Year 6 100,000 600,000 Year 7 100,000 700,000 Year 8 100,000 800,000

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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