Porter Company is analyzing two potential investments Project X $ 75,900 Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 *26,000 26,000 26,000 Project Y $ 64,000 4,400 28,000 28,000 20,000 If the company is using the payback period method, and it requires a payback of three years or less, which projects) should be selected? 0

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Porter Company is analyzing two potential investments
Initial investment
Net cash flow:
Year 1
Year 2
Year 3
Year 4
Project X Project Y
$ 75,900
$ 64,000
26,000
26,000
26,000
4,400
28,000
28,000
20,000
If the company is using the payback period method, and it requires a payback of three years or less, which project(s) should be selected?
0
Transcribed Image Text:Porter Company is analyzing two potential investments Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 Project X Project Y $ 75,900 $ 64,000 26,000 26,000 26,000 4,400 28,000 28,000 20,000 If the company is using the payback period method, and it requires a payback of three years or less, which project(s) should be selected? 0
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