Question: SSS Inc is considering 2 projects A and B which are independent , what would be the correct decision using the payback decision rule if

SSS Inc is considering 2 projects A and B which are independent, what would be the correct decision using the payback decision rule if the payback cutoff period is 3 years?

Project

NPV

IRR

Payback Period

A

$6.5 million

4.66%

3.6 years

B

$1.8 million

4.33%

2.1 years

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