Payback cutoff of three years

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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



























Reference no: EM131811906

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