Chapter 5 Session 3-2 1. Calculating Payback Period and NPV Janina, Inc., has the following mutually exclusive projects. Year 0 1 2 3 Project A -$20,000 15,200 5,900 2,100 Project B -$23,000 14.300 8,100 7,100 de ma a. Suppose the company's payback period cutoff is two years. Which of these two projects should be chosen? b. Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent? In Problem 1 - Part a, calculate the PB periods for Projects A and B. and compared them

1. Calculating Payback Period and NPV Janina, Inc, has the following mutually exclusive projects. a. Suppose the company's payback period cutotf is two years. Which of these two projects should be choson? b. Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent