Payback period Given the cash Bow of two projects A and B and using the...
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Payback period Given the cash Bow of two projects A and B and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a three-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year Cash Flow Cost Cash low year 1 Cash flow year 2 Cash flow Cash flow year 4 Cash flow year 5 Cash flow year 6 $8,000 $3.200 $3.200 $3.200 $3 200 $3.200 $3.200 $105,000 $21,000 $10,500 31,500 S0 SO What is the payback period for project A
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