Question
1. Consider the cash flow of the two projects depicted in table 3. If WiseGuy inc. uses payback period rule to choose projects, which of
1. Consider the cash flow of the two projects depicted in table 3. If WiseGuy inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest? Project A, Project B, Project A and Project B have the same ranking, Cannot calculate a payback period without a discount rate.
Time 0. Time 1. Time 2. Time 3
Project A. -11,000 3,000. 8,000 12,000. Project B. -4000 4,000 3,000 10,000
B. If WiseGuy inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? - Projects A, Project B, Project A and Project B have the same ranking, Cannot calculate a payback period without a discount rate.
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski PhD
3rd Edition
1567932320, 978-1567932324
