Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? Year 0 (Investment) A ($) Project -1,000 B ($) Project -$10,000 C ($)Project -$5,000 1 600 4,000 2000 2 300 3000 1000 3 200 2000 2000 4 100 2000 1000
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? Year 0 (Investment) A ($) Project -1,000 B ($) Project -$10,000 C ($)Project -$5,000 1 600 4,000 2000 2 300 3000 1000 3 200 2000 2000 4 100 2000 1000
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6PB: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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- Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?
Year 0 (Investment)
|
A ($) Project -1,000 |
B ($) Project -$10,000 |
C ($)Project -$5,000 |
1 |
600 |
4,000 |
2000 |
2 |
300 |
3000 |
1000 |
3 |
200 |
2000 |
2000 |
4 |
100 |
2000 |
1000 |
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