Question: eGolf, Inc., has the following mutually exclusive projects. a. Suppose eGolfs payback period cutoff is two years. Which of these two projects should be chosen?

eGolf, Inc., has the following mutually exclusive projects.

a. Suppose eGolf€™s payback period cutoff is two years. Which of these two projects should be chosen?
b. Suppose eGolf uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?

YEAR | PROJECTA | PROJECT B -$10,500 6,000 5,000 1,500 -$8,400 4,300 3,900 3,600

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