Siva inc imposes a payback cutoff of three years for its


Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year 0, 1, 2, 3, 4 Cash Flow (A) -$68,000, $27,000, $36,000, $25,000, $12,000 Cash Flow (B) –$ 78,000, $19,000, $22,000, $34,000, $238,000

What is the payback period for both projects? Project A or Project B

Which project should the company accept? Project A or Project B

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Financial Management: Siva inc imposes a payback cutoff of three years for its
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