Question: Project A Project B Time 0 -8,000 -4,000 Time 1 10,000 3,000 Time 2 8,000 6,000 Time 3 8,000 9,000 Consider the cash flow of
|
| Project A | Project B |
| Time 0 | -8,000 | -4,000 |
| Time 1 | 10,000 | 3,000 |
| Time 2 | 8,000 | 6,000 |
| Time 3 | 8,000 | 9,000 |
"Consider the cash flow of the two projects depicted in Table 3. If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest? --- "
| Project A. | ||
| Project B. | ||
| Project A and Project B have the same ranking. | ||
| Cannot calculate a payback period without a discount rate. |
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