McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company...

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McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Cash Flow (A) 0 -$109,400 -$127,000 771 42,000 47,000 40,000 27,000 Year 1 2 3 4 Cash Flow Project A Project B (B) 34,000 37,000 45,000 249,000 What is the payback period for both projects? (Round the final answers to 2 decimal places.) Payback period years years Which project should the company accept? McKernan Inc. imposes a payback cutoff of three years for its international investment projects. The company has the following two projects Cash Flow (A) 0 -$109,400 -$127,000 771 42,000 47,000 40,000 27,000 Year 1 2 3 4 Cash Flow Project A Project B (B) 34,000 37,000 45,000 249,000 What is the payback period for both projects? (Round the final answers to 2 decimal places.) Payback period years years Which project should the company accept?

Answer rating: 100% (QA)

Project A Initial investment 109400 Year 1 cash flow 42000 Year 2 cash flow 47000 Year 3 cash flow 4... View the full answer