Gander, Inc. is considering two projects with the following cash flows. Year Project X Project Y 0 ($100,000) ($100,000) 1 40,000 50,000 2 40.000 0 3 40,000 0 4 40,000 0 5 40,000 250,000 Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. without using Excel please explain to me why the payback period for project y is 4.2 years
- Gander, Inc. is considering two projects with the following cash flows.
Year Project X Project Y
0 ($100,000) ($100,000)
1 40,000 50,000
2 40.000 0
3 40,000 0
4 40,000 0
5 40,000 250,000
Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less.
without using Excel please explain to me why the payback period for project y is 4.2 years
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