Stenson, Inc., imposes a payback cutoff of three years for its international investmentprojects. Assume the company has the following two projects available.Year Cash Flow A Cash Flow B-$58,000 -$103,00023,50030,80025,50011,50025,50030,50028,500237,00012What is the payback period for each project? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g., 32.16.)Project AyearsProject ByearsWhich, if either, project(s) should the company accept?

The payback period method is an important technique of capital budgeting. It is also known as the…

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. 了富 Year Cash Flow A Cash Flow B -$58,000 23,500 30,800 25,500 11,500 -$103,000 25,500 30,500 28,500 237,000 1 2 4 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which, if either, project(s) should the company accept?

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. 了富 Year Cash Flow A Cash Flow B -$58,000 23,500 30,800 25,500 11,500 -$103,000 25,500 30,500 28,500 237,000 1 2 4 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which, if either, project(s) should the company accept?

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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Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B O -$60,000 -$ 105,000 24,500 32,000 26,500 12,500 26,500 31,500 27,500 235,000 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years -23 4
Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Cash Flow(A) -$ 54,000 21,500 28,400 23,500 9,500 Cash Flow(B) -$ 99,000 23,500 28,500 30,500 241.000 Year What is the payback period for each project? Project A years Project B years Which, if either, project(s) should the company accept? -234
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Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 01234 -$ 52,000 20,500 27,200 22,500 8,500 Cash Flow (B) -$ 97,000 22,500 27,500 31,500 243,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A Project B b. Project acceptance years years
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) 0 -$56,000 1 2 3 4 22,500 29,600 24,500 10,500 Cash Flow (B) -$ 101,000 a. Project A Project B b. Project acceptance 24,500 29,500 29,500 239,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? years years
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Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Cash Flow (B) Year Cash Flow (A) 0 -$ 53,000 -$ 63,000 1234 19,500 11,500 2 21,000 14,500 17,500 19,000 4,500 223,000 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? Project A O Project B
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