A company is considering two short-term projects:

Month A B

0 -$1,200 -$1800

1 $0 $ 400

2 $200 $ 400

3 $300 $ 300

4 $400 $ 500

5 $500 $ 200

6 $600 $ 100

a. Based on the undiscounted payback period, which project is preferred?

b. Calculate the benefit-cost ratio for each alternative (use excel)

c. Based on the benefit-cost ratio analysis method, which project is preferred?

(Show and explain your solution)

Answer rating: 100% (QA)

a Undiscounted Payback Period Analysis To determine the undiscounted payback period for each project ... View the full answer