What is the payback period method, briefly explain. What is the payback criterion decision rule? Moss fashions
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- What is the payback period method, briefly explain. What is the payback criterion decision rule?
- Moss fashions imposes a payback period method for its below international investment projects. If a company has the following two projects. According to payback, which project should be accepted, and which should be rejected?
Year | Cash flow (A) | Cash flow (B) |
0 | -$125,000 | -$355,000 |
1 | $59,000 | $75,000 |
2 | $50,000 | $92,000 |
3 | $35,000 | $150,000 |
4 | $25,000 | $280,000 |
Expert Answer:
Answer The Payback Period Method The payback period method is a capital budgeting technique used to ... View the full answer
Related Book For 
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
