International investment projects

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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 B 0 -$ 53,000 -$ 98,000 1 21,000 23,000 2 27,800 28,000 3 23,000 31,000 4 9,000 242,000

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?

Reference no: EM13973113

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