QS $24-3($Static$)$ Analyzing payback periods LO P$1$

Howard Company is considering two alternative investments. The payback period is $3\mathrm{.}5$ years for investment A and $4$ years for investment B$.$

If management uses payback period, which investment is preferred?

multiple choice $1$

Investment A

Investment B

Will an investment with a shorter payback period always be chosen over an investment with a longer payback period?

multiple choice $2$

Yes

No