question archive East Carolina UniversityFINA 6144 Problem 1) Payback period measure What is the payback period for the following set of cash flows? CF0 = -$5,900 CF1 = $2,000 CF2 = $2,700 CF3 = $1,500 CF4 = $900 Problem 2) Payback period measure Global Toys Inc
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East Carolina UniversityFINA 6144
Problem 1) Payback period measure
What is the payback period for the following set of cash flows? CF0 = -$5,900
CF1 = $2,000 CF2 = $2,700 CF3 = $1,500 CF4 = $900
Problem 2) Payback period measure
Global Toys Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?
Project A |
Project B |
CF0 = -$55,000 |
CF0 = -$95,000 |
CF1 = 19,000 |
CF1 = 18,000 |
CF2 = 27,000 |
CF2 = 26,000 |
CF3 = 24,000 |
CF3 = 28,000 |
CF4 = 9,000 |
CF4 = 260,000 |
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