Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, . and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-ye for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? ] years (Round to two decimal places.) - X Data table With a 3-year cutoff period for recapturing the initial cash outflow, project A would be What is the payback period for project B? (Click on the following icon = in order to copy its contents into a spreadsheet.) ] years (Round to two decimal places.) rejected | Cash Flow B D With a 3-year cutoff period for recapturing the initial cash outflow, project B would be Cost $10,000 $25,000 $45,000 $100.000 accepted Cash flow year 1 $4,000 $2,000 $10,000 $40,000 What is the payback period for project C? Cash flow year 2 $4,000 $8,000 $15,000 $30,000 Cash flow year 3 $4,000 $14,000 $20,000 $20,000 ] years (Round to two decimal places.) Cash flow year 4 $4,000 $20,000 $4,000 $10,000 Cash flow year 5 $4,000 $26,000 $15,000 $0 With a 3-year cutoff period for recapturing the initial cash outflow, project C would be Cash flow year 6 $4,000 $32,000 $10,000 $0 What is the payback period for project D? ] years (Round to two decimal places.) Print Done With a 3-year cutoff period for recapturing the initial cash outflow, project D would be
Payback period. Given the cash flow of four projects-A, B, C, and D-in the following table, . and using the payback period decision model, which projects do you accept and which projects do you reject if you have a 3-ye for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. What is the payback period for project A? ] years (Round to two decimal places.) - X Data table With a 3-year cutoff period for recapturing the initial cash outflow, project A would be What is the payback period for project B? (Click on the following icon = in order to copy its contents into a spreadsheet.) ] years (Round to two decimal places.) rejected | Cash Flow B D With a 3-year cutoff period for recapturing the initial cash outflow, project B would be Cost $10,000 $25,000 $45,000 $100.000 accepted Cash flow year 1 $4,000 $2,000 $10,000 $40,000 What is the payback period for project C? Cash flow year 2 $4,000 $8,000 $15,000 $30,000 Cash flow year 3 $4,000 $14,000 $20,000 $20,000 ] years (Round to two decimal places.) Cash flow year 4 $4,000 $20,000 $4,000 $10,000 Cash flow year 5 $4,000 $26,000 $15,000 $0 With a 3-year cutoff period for recapturing the initial cash outflow, project C would be Cash flow year 6 $4,000 $32,000 $10,000 $0 What is the payback period for project D? ] years (Round to two decimal places.) Print Done With a 3-year cutoff period for recapturing the initial cash outflow, project D would be
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2PA
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