Question: Trinitron Inc. is considering two projects. Project A has uneven cash flows while Project B has even cash flows. What would happen to the payback

Trinitron Inc. is considering two projects. Project A has uneven cash flows while Project B has even cash flows. What would happen to the payback period of each project if it was determined that costs were overestimated by 50%?

A : The new information would result in both projects having a decreased payback period but the amount of the decrease for Project A could not be determined.

B : The new information would result in both projects having an increased payback period but the amount of the increase for Project B could not be determined.

C : The new information would result in both payback periods increasing by 50%.

D : The new information would result in both payback periods decreasing by 50%.

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