Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B $57,000 23,000 30.200 25,000 11,000 $102,000 25,000 30,000 29,000 238,000 0. 2. 3. 4. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years

Financial And Managerial Accounting
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Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...
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2. Find the amount of years for project A and B
Sav
Stenson, Inc., imposes a payback cutoff of three years for its international investment
projects. Assume the company has the following two projects available.
Year Cash Flow A Cash Flow B
$57,000
23,000
30,200
25,000
11,000
$ 102,000
25,000
30,000
29,000
238,000
3.
4
What is the payback period for each project? (Do not round intermediate calculations
and round your answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
years
years
Which, if either, project(s) should the company accept?
Accept Project A and reject Project B
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2 of 6
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Transcribed Image Text:Sav Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B $57,000 23,000 30,200 25,000 11,000 $ 102,000 25,000 30,000 29,000 238,000 3. 4 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years Which, if either, project(s) should the company accept? Accept Project A and reject Project B <Prev 2 of 6 e here to search
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