What is the payback period for each project

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Stenson Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following 2 projects available.

Year. Cash Flow(A). Cash Flow(B)

0 75,000 125,000

1 33,000 29,000

2 36,000 32,000

3 19,000 35,000

4 9,000 240,000

a. What is the payback period for each project?

b. Which project should the company accept if any?

Reference no: EM132398297

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