What is the payback period for both projects

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Buy Coastal, Inc., imposes a payback cutoff of 4 years for its international investment projects. Suppose the company has the following two projects available. Project A has payback period of years, while project B has a payback period of years. Therefore, a)reject or B) accept project A and a)reject or B) accept project B(Round your answers to 3 decimal places. (e.g., 32.162))

What is the payback period for both projects?

Year Cash Flow (A) Cash Flow (B)
0 $-62,000 -$72,000
1 24,000 16,000
2 30,000 19,000
3 22,000 28,000
4 9,000 232,000

 

Reference no: EM13279499

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