Question: 1.What are three potential flaws with the regular payback method? Does the discounted payback method correct all three flaws? Explain. ANS: 2. Project X is

1.What are three potential flaws with the regular payback method? Does the discounted payback method correct all three flaws? Explain. ANS: 2. Project X is very risky and has an NPV of $3 million. Project Y is very safe and has an NPY of $2.5 million. They are mutually exclusive, and project risk has been properly considered in the NPV analyses. Which project should be chosen? Explain

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