Payback Period A manager is considering three mutually exclusive investment projects, A, B, and C, each promising a cash flow of $20,000 per year for an initial investment of $100,000. Useful lives are as follows:

PROJECT YEARS A 3)
B 6 Cc 7 Compute the payback period for each project. If payback time is the sole criterion for the decision, which project is most desirable?
Which project offers the highest rate of return? L01