Payback period. Given the cash flow of two projects-A and B--in the following table, E, 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. What is the payback period for project A? 2.5 years (Round to one decimal place.) Nith a 3-year cutoff period for recapturing the initial cash outflow, project A would be accepted . (Select from the drop-down menu.) What is the payback period for project B? 4.0 years (Round to one decimal place.) Nith a 3-year cutoff period for recapturing the initial cash outflow, project B would be rejected. (Select from the drop-down menu.) 1 Data Table (Click on the following icon O in order to copy its contents into a spreadsheet.) Cash Flow B Cost $12,000 $110,000 Cash flow year 1 $4,800 $44,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 $4,800 $33,000 $4,800 $22,000 tuestion is complete. Tap $4,800 $11,000 $0 Cash flow year 5 $4,800 Il parts showing Similar Question Cash flow year 9. $4,800 $0

Payback period. Given the cash flow of two projects-A and B--in the following table, E, 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. What is the payback period for project A? 2.5 years (Round to one decimal place.) Nith a 3-year cutoff period for recapturing the initial cash outflow, project A would be accepted . (Select from the drop-down menu.) What is the payback period for project B? 4.0 years (Round to one decimal place.) Nith a 3-year cutoff period for recapturing the initial cash outflow, project B would be rejected. (Select from the drop-down menu.) 1 Data Table (Click on the following icon O in order to copy its contents into a spreadsheet.) Cash Flow B Cost $12,000 $110,000 Cash flow year 1 $4,800 $44,000 Cash flow year 2 Cash flow year 3 Cash flow year 4 $4,800 $33,000 $4,800 $22,000 tuestion is complete. Tap $4,800 $11,000 $0 Cash flow year 5 $4,800 Il parts showing Similar Question Cash flow year 9. $4,800 $0

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 8P

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Similar questions

Calculate the project cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?
Calculate the cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?
The management of Ryland International Is considering Investing in a new facility and the following cash flows are expected to result from the investment: A. What Is the payback period of this uneven cash flow? B. Does your answer change if year 6s cash inflow changes to $920,000?
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