3-9 Bronco, Inc., imposes a payback cutoff of three years for its internationalinvestment projects.Cash FlowYearCash Flow (B)(A)-$62,00024,00030,00022,0009,000-$ 72,00016,00019,00028,000232,0004What is the payback period for both projects? (Round your answers to 2decimal places, e.g., 32.16.)Project AyearsProject ByearsWhich project should the company accept?O Project BO Project Ao123

Before investing in new projects, profitability is evaluated by using various methods like NPV, IRR,…

Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Cash Flow Year Cash Flow (B) (A) -$62,000 24,000 30,000 22,000 9,000 -$ 72,000 16,000 19,000 28,000 232,000 1 2 3. 4 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which project should the company accept? O Project B O Project A

Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Cash Flow Year Cash Flow (B) (A) -$62,000 24,000 30,000 22,000 9,000 -$ 72,000 16,000 19,000 28,000 232,000 1 2 3. 4 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A years Project B years Which project should the company accept? O Project B O Project A

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 –$ 52,000 –$ 62,000 1 19,000 11,000 2 20,000 14,000 3 17,000 18,000 4 4,000 222,000 What is the payback period for both projects? Which project should the company accept?
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