Year Cash Flow (A) Cash Flow (B) 01234 -$40,000 14,000 18,000 17,000 11,000 -$55,000 11,000 13,000 16,000 255,000 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 B Project A
Year Cash Flow (A) Cash Flow (B) 01234 -$40,000 14,000 18,000 17,000 11,000 -$55,000 11,000 13,000 16,000 255,000 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 B Project A
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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![S09-03 Calculating Payback [LO2]
Kara, Incorporated, imposes a payback cutoff of three years for its international
investment projects.
Year Cash Flow (A) Cash Flow (B)
0
-$40,000
1
14,000
2
18,000
134
17,000
-$ 55,000
11,000
13,000
16,000
11,000
255,000
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 B
Project A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F063683ca-3f8f-4ea9-aad2-4f6be390f41d%2F12c84616-0dd8-41d8-a4cd-f8e1cb4b0d73%2Fub1o22j_processed.png&w=3840&q=75)
Transcribed Image Text:S09-03 Calculating Payback [LO2]
Kara, Incorporated, imposes a payback cutoff of three years for its international
investment projects.
Year Cash Flow (A) Cash Flow (B)
0
-$40,000
1
14,000
2
18,000
134
17,000
-$ 55,000
11,000
13,000
16,000
11,000
255,000
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 B
Project A
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