Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?

 

Year

Project A ($)

Project B ($)

Project C ($)

0 (Investment)

-2,000

-$10,000

-$5,000

1

-2,000

-6,000

-12,000

2

800

4,000

5,000

3

600

3,000

5,000

4

600

2,000

5,000

5

400

2,000

2,000

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