Year Project A ($) Project B ($) Project C ($) O (Investment) -1,000 -$10,000 -$5,000 600 4,000 2,000 1,000 2 300 3,000 3 200 2,000 2,000 2,000 4,000 1,000 2,000 4 100 5 500
Year Project A ($) Project B ($) Project C ($) O (Investment) -1,000 -$10,000 -$5,000 600 4,000 2,000 1,000 2 300 3,000 3 200 2,000 2,000 2,000 4,000 1,000 2,000 4 100 5 500
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The
three projects are project A, project B and project C. Given the following cash flow information,
calculate the payback period for each. If CGC requires a 3-year payback before an investment
can be made, which project(s) would be accepted?
Transcribed Image Text:Year
Project A ($)
Project B ($)
Project C ($)
O (Investment)
-1,000
-$10,000
-$5,000
600
4,000
3,000
2,000
1,000
1
300
200
2,000
2,000
1,000
4
100
2,000
500
4,000
2,000
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