Stellar?Inc. has two projects as follows:

Project		Initial CF		CF1		CF2		CF3		CF4
A		-2,400		800		1,150		1,000		1,850
B		-2,950		700		1,450		1,000		3,850

If?Stellar?set?2.49?years as a cut-off period for screening projects, which projects will be selected, using the payback period method??(Round answers to 2 decimal places, e.g. 125.25.)

Project A payback period		enter a number of years??years
Project B payback period		enter a number of years?years
select a project?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??? ?? ?? ?? ?? ?? ?? ?? ?? ?Neither projectProject BProject A?will be selected.

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Stellar Inc. has two projects as follows: Initial CF CF -2,400 800 -2,950 700 Project A B CF2 CF3 1,150 1,450 1,000 Project B payback period CF4 1,000 1,850 3,850 If Stellar set 2.49 years as a cut-off period for screening projects, which projects will be selected, using the payback period method? (Round answers to 2 decimal places, e.g. 125.25.) Project A payback period will be selected. years years Stellar Inc. has two projects as follows: Initial CF CF -2,400 800 -2,950 700 Project A B CF2 CF3 1,150 1,450 1,000 Project B payback period CF4 1,000 1,850 3,850 If Stellar set 2.49 years as a cut-off period for screening projects, which projects will be selected, using the payback period method? (Round answers to 2 decimal places, e.g. 125.25.) Project A payback period will be selected. years years

Answer rating: 100% (QA)

To determine which projects will be selected using the payback period method we need to calculate th... View the full answer