Question: Question #5 : Shortcliff Co.s uses the Payback Period method for evaluating its projects. The Payback Period cut-off rule is 3 years. Shortcliff is considering

Question #5: Shortcliff Co.s uses the Payback Period method for evaluating its projects. The Payback Period cut-off rule is 3 years. Shortcliff is considering the following project:

	Cash Flow for
Year	Project A
0	-$75,000
1	$33,000
2	$36,000
3	$19,000
4	$9,000

Required:

Should Shortcliff accept or reject Project A?
Why or why not?

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