What are the payback periods of projects E and F in the following​ table:  Cash Flow E F Cost 44,000 95,000 Cash flow year 1 11,000 38,000 Cash flow year 2 11,000 28,500 Cash flow year 3 11,000 19,000 Cash flow year 4 11,000 9,500 Cash flow year 5 11,000 0 Cash flow year 6 11,000 0 Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 ​years, which​ project(s) do you​ accept? What is the payback period for project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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What are the payback periods of projects E and F in the following​ table: 

Cash Flow E F
Cost 44,000 95,000
Cash flow year 1 11,000 38,000
Cash flow year 2 11,000 28,500
Cash flow year 3 11,000 19,000
Cash flow year 4 11,000 9,500
Cash flow year 5 11,000 0
Cash flow year 6 11,000 0

Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 ​years, which​ project(s) do you​ accept? What is the payback period for project?

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