International investment projects

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Reference no: EM13913173

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

Year Cash Flow (A) Cash Flow (B)

0 –$ 59,000 –$ 69,000

1 22,500 14,500

2 27,000 17,500

3 20,500 25,000

4 7,500 229,000

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?

Reference no: EM13913173

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