1. A project has an initial cost of $31,400 and produces cash
inflows of $7,200, $8,900, $7,500, $2,100, and $6,500 over the next
five years, respectively. What is the payback period for this
project? should this project be accepted if management’s cutoff
period is 4 years?
2. A project has an initial cost of $7,900 and cash inflows of
$2,100, $3,140, $3,800, and $4,500 a year over the next four years,
respectively. Assume a discount rate of 10%. What is...