PROJECT A

PROJECT B

PROJECT C

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Initial Outlay

$950

$11,000

$5,500

Inflow year 1

500

6,000

1,000

Inflow year 2

200

3,000

1,000

Inflow year 3

300

3,000

4,000

Inflow year 4

100

3,000

4,000

Inflow year 5

400

3,000

4,000

payback period

calculations)

You are considering three independent projects: project A, project B, and project C. Given the cash flow information in the window

, calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?

What is the payback period of project A?

nothing

years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should

reject

accept

project A because its payback period is

less than or equal to

greater than

the maximum acceptable payback period.(Select from the drop-down menus.)

What is the payback period of project B?

nothing

years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should

accept

reject

project B because its payback period is

less than or equal to

greater than

the maximum acceptable payback period.(Select from the drop-down menus.)

What is the payback period of project C?

nothing

years(Round to two decimal places.)If you require a 3-year payback before an investment can be accepted, you should

accept

reject

project C because its payback period is

less than or equal to

greater than

the maximum acceptable payback period.(Select from the drop-down menus.)