Siva, In., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?
Year |
Cash Flow (A) |
Cash Flow (B) |
0 |
-$45,000 |
-$55,000 |
1 |
16,000 |
13,000 |
2 |
21,000 |
15,000 |
3 |
15,000 |
24,000 |
4 |
9,000 |
255,000 |
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