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Siva Inc imposes a payback cutoff of three years for its international investment projects Year Cash Flow

Siva, Inc., imposes a payback cutoff of three years for its international investment projects.

  

Year Cash Flow (A)   Cash Flow (B)
0 Ac€?o$ 54,000     Ac€?o$ 64,000  
1   20,000       12,000  
2   22,000       15,000  
3   18,000       20,000  
4   5,000       224,000  
 

  

What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.)

  

  Payback period
  Project A years
  Project B years
 

  

Which project should the company accept?

 
  Project A
  Project B
 

V

May 20 2020 View more View Less

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