The payback period for the following set of cash flows is years. (Round your answer to 2 decimal places. (e.g., 32.16))
Year Cash Flow
0 ?$4,800
1 2,600
2 1,900
3 1,600
4 2,800
Buy Coastal, Inc., imposes a payback cutoff of 3 years for its international investment projects. Suppose the company has the following two projects available. Project A has payback period of years, while project B has a payback period of years. Therefore, it should
(Click to select)
accept
reject
project A and
(Click to select)
reject
accept
project B. (Round your answers to 3 decimal places. (e.g., 32.162))
Year Cash Flow (A) Cash Flow (B)
0 ?$48,000 ?$71,000
1 27,000 9,000
2 38,000 17,000
3 18,000 35,000
4 4,000 274,000
An investment project has annual cash inflows of $7,700, $8,500, $8,600, and $9,000, and a discount rate of 7 percent. If the initial cost is $23,200, the discounted payback period for these cash flows is years. (Round your answer to 2 decimal places. (e.g., 32.16))
The payback period for the following set of cash flows is years. (Round your answer to 2 decimal places. (e.g., 32.16))
Year Cash Flow
0 ?$4,800
1 2,600
2 1,900
3 1,600
4 2,800
Buy Coastal, Inc., imposes a payback cutoff of 3 years for its international investment projects. Suppose the company has the following two projects available. Project A has payback period of years, while project B has a payback period of years. Therefore, it should
(Click to select)
accept
reject
project A and
(Click to select)
reject
accept
project B. (Round your answers to 3 decimal places. (e.g., 32.162))
Year Cash Flow (A) Cash Flow (B)
0 ?$48,000 ?$71,000
1 27,000 9,000
2 38,000 17,000
3 18,000 35,000
4 4,000 274,000
An investment project has annual cash inflows of $7,700, $8,500, $8,600, and $9,000, and a discount rate of 7 percent. If the initial cost is $23,200, the discounted payback period for these cash flows is years. (Round your answer to 2 decimal places. (e.g., 32.16))
Related questions
| Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. |
| Year | Cash Flow (A) | Cash Flow (B) | |||||
| 0 | â$ | 67,000 | â$ | 77,000 | |||
| 1 | 26,500 | 18,500 | |||||
| 2 | 35,000 | 21,500 | |||||
| 3 | 24,500 | 33,000 | |||||
| 4 | 11,500 | 237,000 | |||||
| What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Payback period | ||
| Project A | years | |
| Project B | years | |
| Which project should the company accept? | ||||
|
Global Toys, 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 | ||
| 0 | â$ | 61,000 | â$ | 106,000 |
| 1 | 25,000 | 27,000 | ||
| 2 | 32,600 | 32,000 | ||
| 3 | 27,000 | 27,000 | ||
| 4 | 13,000 | 234,000 | ||
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.)
| Payback period | |
| Project A | years |
| Project B | years |
Which, if either, project(s) should the company accept?
| Global Toys, 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 | ||
| 0 | â$ | 48,000 | â$ | 93,000 |
| 1 | 18,500 | 20,500 | ||
| 2 | 24,800 | 25,500 | ||
| 3 | 20,500 | 33,500 | ||
| 4 | 6,500 | 247,000 | ||
| Requirement 1: |
| What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Payback period | |
| Project A | years |
| Project B | years |
| Requirement 2: |
| Should it accept either of them? |
