Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the...
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Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) Cash Flow (B) 0 -$ 54,000 -$ 99,000 1 21,500 23,500 2 28,400 28,500 3 23,500 30,500 4 9,500 241,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A Project B b. Project acceptance years years Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) Cash Flow (B) 0 -$ 54,000 -$ 99,000 1 21,500 23,500 2 28,400 28,500 3 23,500 30,500 4 9,500 241,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A Project B b. Project acceptance years years
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