Buy Coastal, Inc., imposes a payback cutoff of three years
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects.
Year Cash Flow (A) Cash Flow (B)
0 –$ 68,000 –$ 78,000
1 27,000 19,000
2 36,000 22,000
3 25,000 34,000
4 12,000 238,000
What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16))
Payback period
Project A years
Project B years
Which project should the company accept?
Project A | |
Project B |
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