Question
What is the payback period on each of the following projects? Given that you wish to...
- What is the payback period on each of the following projects?
- Given that you wish to use the payback rule with a cutoff period of three years, which projects would you accept?
|
Cash Flows, $ |
|||||
|
Project |
C0 |
C1 |
C2 |
C3 |
C4 |
|
A |
-10,000 |
+1,000 |
+1,000 |
+2,000 |
+6,000 |
|
B |
-5,000 |
0 |
+1,000 |
+1,500 |
+3,000 |
|
C |
-2,000 |
+2,000 |
+4,000 |
+1,000 |
+5,000 |
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Answer #1
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