Cash FlowEF$44,000$9,778Cost$90,000Cash flow year 1$36,000Cash flow year 2$9,778$27,000Cash flow year 3Cash flow year 4$9,778$18,000$9,778$9,778$9,000Cash flow year 5$0Cash flow year 6$9,778$0 Payback period. What are the payback periods of projects E and F in the following table:? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do youассept?.....What is the payback period for project E?years (Round to one decimal place.)

Answered: Image /qna-images/answer/c50594c3-d19c-4cad-be65-5ec7ec2e115c.jpg

Cash Flow E $44,000 $9,778 $9,778 Cost $90,000 Cash flow year 1 $36,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 $27,000 $9,778 $18,000 $9,778 $9,000 $0 $9,778 Cash flow year 6 $9,778 $0

Cash Flow E $44,000 $9,778 $9,778 Cost $90,000 Cash flow year 1 $36,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 $27,000 $9,778 $18,000 $9,778 $9,000 $0 $9,778 Cash flow year 6 $9,778 $0

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Cash Flow
E
F
$44,000
$9,778
Cost
$90,000
Cash flow year 1
$36,000
Cash flow year 2
$9,778
$27,000
Cash flow year 3
Cash flow year 4
$9,778
$18,000
$9,778
$9,778
$9,000
Cash flow year 5
$0
Cash flow year 6
$9,778
$0

Payback period. What are the payback periods of projects E and F in the following table:
? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which project(s) do you
ассept?
.....
What is the payback period for project E?
years (Round to one decimal place.)

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