Howard Co. is considering two alternative investments. The payback period is 3.5 years for Investment A and
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Howard Co. is considering two alternative investments. The payback period is 3.5 years for Investment A and 4 years for Investment B.
a. If management uses payback period, which investment is preferred?
b. Will an investment with a shorter payback period always be chosen over an investment with a longer payback period?
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