Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. 1. Given the following cash flow information, calculate the payback period for each. Show all working 2. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. 1. Given the following cash flow information, calculate the payback period for each. Show all working 2. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
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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Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C.
1. Given the following cash flow information, calculate the payback period for each. Show all working
2. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
Transcribed Image Text:Year
Project Project Project
A ($) B ($)
C ($)
-2,000-$10,000-$5,000
(Investment)
1-2,000 -6,000 -2,000
800
4,000 5,000
3
600
3,000 5,000
4
600
2,000 5,000
5 400
2,000 2,000
2.
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