Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose...
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Accounting
Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $30,000; project Helium requires an initial outlay of $34,000. Using the expected cash inflows given for each project in the following table,
Expected cash inflows
Year
Hydrogen
Helium
1
$5,500
$6,000
2
$7,000
$8,000
3
$9,000
$7,500
4
$5,000
$6,000
5
$4,000
$6,000
6
$1,000
$3,500
calculate each project's payback period. Which project meetsElysian's standards?
The payback period of project Hydrogen is ___ years
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