2. Calculating Payback An investment project provides cash inflows of $780 per year for eight years. What is the project payback period if the initial cost is $3,000? What if the initial cost is $5,000? What if it is $7,000?

3. Calculating Payback Tulip Mania, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should they accept either of them?


Cash Flow (A)

Cash Flow (B)

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