Question: Q3. Read, analyze and use the best method to make efficient capital investment decisions. Kara, Incorporated, imposes a payback cutoff of three years for its

Q3. Read, analyze and use the best method to make efficient capital investment decisions.

Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects.

Year

Cash Flow (A)

Cash Flow (B)

0

$ 58,000

$ 68,000

1

22,000

14,000

2

26,000

17,000

3

20,000

24,000

4

7,000

228,000
  1. What is the payback period for both projects? (20 marks) (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  2. which project should the company accept? Why? project A , PROJECT B

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