In: Finance
(Payback period calculations) You are considering three independent projects: project A, project B, and project C. Given the free cash flow information in the popup window, calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?
Initial Outlay -900 -10,000
-6,500
Inflow year 1 700 6,000
2,000
Inflow year 2 400 4,000
2,000
Inflow year 3 200 4,000
4,000
Inflow year 4 100 4,000
4,000
Inflow year 5 600 4,000
4,000