Question: Novak Inc. has two projects as follows: Initial CF CF1 Project A B -2,500 -3,050 Project A payback period 900 Project B payback period CF

Novak Inc. has two projects as follows: Initial CF CF1 Project A B -2,500 -3,050 Project A payback period 900 Project B payback period CF 3 CF2 1,250 1,000 1,950 If Novak set 2.39 years as a cut-off period for screening projects, which projects will be selected, using the payback period method? (Round answers to 2 decimal places, e.g. 125.25.) CF4 800 1,550 1,000 3,950 will be selected. years years CH

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