Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three...
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Finance
Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted? (Total 7 points)
Year
Project A ($)
Project B ($)
Project C ($)
0 (Investment)
-2,000
-$10,000
-$5,000
1
-2,000
-6,000
-12,000
2
800
4,000
5,000
3
600
3,000
5,000
4
600
2,000
5,000
5
400
2,000
2,000
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