When evaluating international investment projects, Checks Inc. imposes a payback cutoff of three years. Year Cash Flow (A) Cash Flow (B) 0 -$ 40,000 -$ 55,000 1234 14,000 11,000 18,000 13,000 17,000 16,000 4 11,000 255,000 What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years Which project should the company accept? O Project B O Project A

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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When evaluating international investment projects, Checks Inc. imposes a payback
cutoff of three years.
Year
Cash Flow (A)
Cash Flow (B)
0
-$ 40,000
-$ 55,000
1234
14,000
11,000
18,000
13,000
17,000
16,000
4
11,000
255,000
What is the payback period for both projects? (Do not round intermediate calculations
and round your answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
years
years
Which project should the company accept?
O Project B
O Project A
Transcribed Image Text:When evaluating international investment projects, Checks Inc. imposes a payback cutoff of three years. Year Cash Flow (A) Cash Flow (B) 0 -$ 40,000 -$ 55,000 1234 14,000 11,000 18,000 13,000 17,000 16,000 4 11,000 255,000 What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years Which project should the company accept? O Project B O Project A
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