Payback period. Given the cash flow of two projects-A and B-in the following table, . and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter6: Managing Cash Flow
Section: Chapter Questions
Problem 9DQ
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uring the initial cash outflow? For payback period calp
pack period for project A?
i Data Table
nd to one decimal place.)
(Click on the following icon in order to copy its contents into a spreadsheet)
Cash Flor
B.
$15,000
S7,500
S7.500
S7,500
S7.500
S7,500
S7.500
$90,000
$36,000
$27,000
$18,000
$9,000
SO
Cost
Cash flow year 1
Cash flow year 2
Cash flow year 3
Cash flow year 4
Cash flow year 5
Cash flow year 6
$0
Print
Done
Transcribed Image Text:uring the initial cash outflow? For payback period calp pack period for project A? i Data Table nd to one decimal place.) (Click on the following icon in order to copy its contents into a spreadsheet) Cash Flor B. $15,000 S7,500 S7.500 S7,500 S7.500 S7,500 S7.500 $90,000 $36,000 $27,000 $18,000 $9,000 SO Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow year 6 $0 Print Done
Payback period. Given the cash flow of two projects-A and B-in the following table, E
period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year.
and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff
What is the payback period for project A?
years (Round to one decimal place)
Transcribed Image Text:Payback period. Given the cash flow of two projects-A and B-in the following table, E period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a 3-year cutoff What is the payback period for project A? years (Round to one decimal place)
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