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 -$57,000 -$ 102,000 23,000 30,200 25,000 11,000 25,000 30,000 29,000 238,000 3 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 Project B years 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. Year Cash Flow A Cash Flow B -$57,000 -$ 102,000 23,000 30,200 25,000 11,000 25,000 30,000 29,000 238,000 3 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 Project B years years Which, if either, project(s) should the company accept?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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