A company produces two boat models, Montauk and Orient.Both products are being considered for major investment projects next year.Relevant data follow:
$\begin{array}{lll}
&\underline{\text { Montauk }}& \underline{\text { Orient }}\
\text { New investment }& \$ 424,000 &\$ 380,000\
\text { Expected 3-year net cash flows: }\
\text { Year 1 } & 150,000 & 130,000 \
\text { Year 2 } & 160,000 & 130,000 \
\text { Year 3 } & 170,000 & 130,000
\end{array}$ Required:
Use the payback period to evaluate these two investment projects.

Question

A company produces two boat models, Montauk and Orient.Both products are being considered for major investment projects next year.Relevant data follow:
 $\begin{array}{lll}
&\underline{\text { Montauk }}& \underline{\text { Orient }}\
\text { New investment }& \$ 424,000 &\$  380,000\
\text { Expected 3-year net cash flows: }\
\text { Year 1 } & 150,000 & 130,000 \
\text { Year 2 } & 160,000 & 130,000 \
\text { Year 3 } & 170,000 & 130,000
\end{array}$ Required:
Use the payback period to evaluate these two investment projects.

Quizplus · Accepted Answer

The Answer of A company produces two boat models, Montauk and Orient.Both products are being considered for major investment projects next year.Relevant data follow:
 $\begin{array}{lll}
&\underline{\text { Montauk }}& \underline{\text { Orient }}\
\text { New investment }& \$ 424,000 &\$  380,000\
\text { Expected 3-year net cash flows: }\
\text { Year 1 } & 150,000 & 130,000 \
\text { Year 2 } & 160,000 & 130,000 \
\text { Year 3 } & 170,000 & 130,000
\end{array}$ Required:
Use the payback period to evaluate these two investment projects.

A Company Produces Two Boat Models, Montauk and Orient Required: Use the Payback Period to Evaluate These Two Investment

A Company Produces Two Boat Models, Montauk and Orient Required:
Use the Payback Period to Evaluate These Two Investment