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Global Toys Inc imposes a payback cutoff of three years for its international investment projects Assume the company has the following two projects available Year Cash Flow A Cash Flow

Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available.
Year Cash Flow A Cash Flow B
0 –$ 54,000      –$ 99,000     
1   21,500        23,500     
2   28,400        28,500     
3   23,500        30,500     
4   9,500        241,000     
 
Requirement 1:

What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

  Payback period
  Project A years  
  Project B years
 
Requirement 2:
Should it accept either of them?
 

 

Apr 05 2020 View more View Less

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