.1i. Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment...

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Accounting

.1i. Buy Coastal, Inc., 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

-$40,000

-$60,000

1

19,000

14,000

2

25,000

17,000

3

18,000

24,000

4

6,000

270,000

ii. An investment project provides cash inflows of $765 per year for eight years. What is the project payback

period if the initial cost is $2,400? What if the initial cost is $3,600? What if it is $6,500?

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