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(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF,) Project A $10,000 Project B $40,000 Year 1 $20,000 $30,000 $40,000 $30,000 $20,000 $10,000 $30,000 3 4 5 $30,000

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF,) Project A $10,000 Project B $40,000 Year 1 $20,000 $30,000 $40,000 $30,000 $20,000 $10,000 $30,000 3 4 5 $30,000

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter14: Statement Of Cash Flows (cashflow)
Section: Chapter Questions
Problem 5R
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Choosing between two projects with acceptable payback periods   Shell Camping​ Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of
​$100,000.
John​ Shell, president of the​ company, has set a maximum payback period of 4 years. The​ after-tax cash inflows associated with each project are shown in the following​ table:
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a.  Determine the payback period of each project.
b.  Because they are mutually​ exclusive, Shell must choose one. Which should the company invest​ in?
Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF;) Project B Project A $10,000 Year 1 $40,000 $20,000 $30,000 $30,000 $20,000 4 $40,000 $10,000 $30,000 $30,000 Print Done
Transcribed Image Text:Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF;) Project B Project A $10,000 Year 1 $40,000 $20,000 $30,000 $30,000 $20,000 4 $40,000 $10,000 $30,000 $30,000 Print Done
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