Some questions are as below
Problem 9-3 Calculating Payback [LO2]
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. |
Year |
Cash Flow (A) |
Cash Flow (B) |
64,000 |
74,000 |
|
25,000 |
17,000 |
|
32,000 |
20,000 |
|
23,000 |
30,000 |
|
10,000 |
234,000 |
What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) |
Payback period |
|||||
Project A |
[removed]years |
||||
Project B |
Which project should the company accept? |
[removed]Project A[removed]Project B |
Problem 9-4 Calculating Discounted Payback [LO3]
An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, and a discount rate of 15 percent. |
What is the discounted payback period for these cash flows if the initial cost is $6,300? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period |
What is the discounted payback period for these cash flows if the initial cost is $8,400? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period[removed]years
What is the discounted payback period for these cash flows if the initial cost is $11,400? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period[removed]years