Question: Under the payback method, which of these two projects is considered the better project? A- Invest $10,000. Cashflows: Yr1: 1,000; Yr2: 9,000 B- Invest $10,000.

Under the payback method, which of these two projects is considered the better project?

A- Invest $10,000. Cashflows: Yr1: 1,000; Yr2: 9,000

B- Invest $10,000. Cashflows: Yr1: 9,000; Yr2: 1,000

Option A: B is better because of earlier cash flows.

Option B: The projects are considered equal.

Option C: A is better.

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