Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: Year 1 $150,000 Year 2 140,000 Year 3 110,000 Year 4 150,000 Year 5 50,000 $600,000 Determine the cash payback period for each proposal. Round your answers to two decimal places. Proposal A: fill in the blank 1 years Proposal B: fill in the blank 2 years

Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual net cash flows of $159,000, while the net cash flows for Proposal B are as follows: Year 1 $150,000 Year 2 140,000 Year 3 110,000 Year 4 150,000 Year 5 50,000 $600,000 Determine the cash payback period for each proposal. Round your answers to two decimal places. Proposal A: fill in the blank 1 years Proposal B: fill in the blank 2 years

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...

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