Question: 9 You are presented with two projects in a table below) that have the same initial cash outlay (as you can see at year O).

 9 You are presented with two projects in a table below)

9 You are presented with two projects in a table below) that have the same initial cash outlay (as you can see at year "O"). However, the following cash inflows are significantly different for these two projects. Your manager instructed you to choose only one of these two projects using the payback period decision criteria. 1. Which one of the two projects would you choose? Why? Explain. 2. What could be the problem with using this decision rule? (Please explain using this example specifically, do not talk in general terms). (10 Points) Cash flows Project B Project A Year 0 1 1 -$25,000 16,000 9,000 0 U AWN -$25,000 10,000 5,000 15,000 20,000 25,000 0 5 0

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