Reference no: EM131829077
Jordan Enterprises is considering a capital expenditure that requires an initial investment of $71,000 and returns? after-tax cash inflows of $10,811 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
a. Determine the payback period for this project.
b. Should the company accept the? project?
a. The payback period for this project is _______years. ?(Round to two decimal? places.)
b. Should the company accept the? project? ?(Select the best answer? below.)
A. The company should reject the project since the? after-tax cash flows occur for more years than the maximum acceptable payback.
B. The company should accept the project since the payback period is less than the maximum.
C. The company should reject the project since the payback period is less than the number of years of the? after-tax cash flows.
D. The company should accept the project since the? after-tax cash flows occur for more years than the maximum acceptable payback.
E. The company should reject the project since the payback period is less than the maximum.
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