18 1 2 3 4 5 6 7 8 9 10 11 12 13 19 15 A B IX ✓ fx C Chapter 9-Assignment 1.4 Problem 1: Calculating Payback D 2 3 Year Cash Flow (A) Cash Flow (B) 0 (55,000) 1 14,000 16,000 $ $ $ $ E Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two international projects with the following projected cash flows: (52,000) $ 17,000 $ 19,000 $ 17,000 $ 11,000 $ F 22,000 285,000 G H Cons a) What is the precise payback period (in decimal form) for these two projects? b) Using payback period rules, should it accept either of them? Create your Original Solution Below- Be sure to show all calculations and clearly indicate answers.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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L8
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689
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vix ✓ fx
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Chapter 9- Assignment 1.4
Problem 1: Calculating Payback
Year Cash Flow (A) Cash Flow (B)
0
S
1234
SS
$
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two
international projects with the following projected cash flows:
$
199
$
E
(52,000) $
17,000 $
19,000 $
17,000 $
11,000 $
F
(55,000)
14,000
16,000
22,000
285,000
G
H
Editing
a) What is the precise payback period (in decimal form) for these two projects?
b) Using payback period rules, should it accept either of them?
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
Transcribed Image Text:L8 1 2 3 4 5 6 7 689 10 11 12 13 19 15 A vix ✓ fx B C D Chapter 9- Assignment 1.4 Problem 1: Calculating Payback Year Cash Flow (A) Cash Flow (B) 0 S 1234 SS $ Siva, Inc., imposes a payback cutoff of three years for its international investment projects. The company has two international projects with the following projected cash flows: $ 199 $ E (52,000) $ 17,000 $ 19,000 $ 17,000 $ 11,000 $ F (55,000) 14,000 16,000 22,000 285,000 G H Editing a) What is the precise payback period (in decimal form) for these two projects? b) Using payback period rules, should it accept either of them? Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
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