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As a financial manager, you have the data related to two projects: Year Cash Flow (A) Cash Flow (B) 0 $ (15,000) $ (19,000) 1

As a financial manager, you have the data related to two projects:

Year Cash Flow (A) Cash Flow (B)
0 $ (15,000) $ (19,000)
1 10,500 12,500
2 6,200 6,000
3 2,100 5,000

Required payback period is Two years

Using the payback period criteria, Project A is accepted or rejected?

Answer 1Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

Using the payback period criteria, Project B is accepted or rejected?

Answer 2Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

The Pay Back Period for project B is

Answer 3Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

If the required payback is two years and six months you accept (A, B, Both, Non)

Answer 4Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

The Pay Back Period for project A is

Answer 5Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

If the required payback is two years and six months, and the two projects are mutually exclusive, you accept (A, B, Both, Non)

Answer 6Choose...1.9 years2.3 YearsA1.7 yearsNonRejectedAcceptedBBoth2.1 years

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