Question: A PM attempts to make a decision on the projects given below. There exist two projects in this decision environment and the related data is

A PM attempts to make a decision on the projects

A PM attempts to make a decision on the projects given below. There exist two projects in this decision environment and the related data is given below in Table. Please analyze this decision problem with respect to both NPV and Payback methods. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 -450 125 100 150 75 100 100 Project A Reg. Rate of 5% return (Interest) Outflow Inflow Project B Reg. Rate of 8% return (Interest) Outflow Inflow -650 175 150 50 175 80 70 According to payback method decide on which of these should be chosen. O A. Project A should be chosen. OB. They have equal chances according to the payback method. OC. Project B should be chosen. OD. There is not enough data to apply this method

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