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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