Siva, In., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?
| Year |
Cash Flow (A) |
Cash Flow (B) |
| 0 |
-$45,000 |
-$55,000 |
| 1 |
16,000 |
13,000 |
| 2 |
21,000 |
15,000 |
| 3 |
15,000 |
24,000 |
| 4 |
9,000 |
255,000 |
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