What is the payback period for each project

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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 –$ 51,000 –$ 96,000 1 20,000 22,000 2 26,600 27,000 3 22,000 32,000 4 8,000 244,000 Requirement 1: What is the payback period for each project? Should it accept either of them?

Reference no: EM131063079

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