Business, 27.11.2019 00:31 raquelqueengucci25

Global toys, inc., imposes a payback cutoff of three years for its international investment projects. assume the company has the following two projects available. year cash flow a cash flow b 0 –$ 51,000 –$ 96,000 1 20,000 22,000 2 26,600 27,000 3 22,000 32,000 4 8,000 244,000 requirement 1: what is the payback period for each project?

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Answer from: abolton04

Project A = 2.2 yeas

Project B = 3.06 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

For Project A:

In year 0 = $51,000

In year 1 = $20,000

In year 2 = $26,600

In year 3 = $22,000

In year 4 = $8,000

If we sum the first 2 year cash inflows than it would be $46,600

Now we deduct the $46,600 from the $51,000, so the amount would be $4,400 as if we added the third year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $22,000

So, the payback period equal to

= 2 years + $4,400 ÷ $22,000

= 2.2 yeas

In 2.2 yeas, the invested amount is recovered for project A

For Project B:

In year 0 = $96,000

In year 1 = $22,000

In year 2 = $27,000

In year 3 = $32,000

In year 4 = $244,000

If we sum the first 3 year cash inflows than it would be $81,000

Now we deduct the $71,000 from the $96,000, so the amount would be $15,000 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $244,000

So, the payback period equal to

= 3 years + $15,000 ÷ $244,000

= 3.06 yeas

In 3.06 yeas, the invested amount is recovered for project B

Answer from: Quest

Ineed the options .

Answer from: Quest

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7. customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

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