chpt9:q4

Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period forsmall-dollar projects. The cutoff period will remain at three years. Given the following fourprojects' cashflows, and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period.

Which projects that would have been accepted under payback period method will now be rejected under the discounted payback period method?(Select the bestresponse.)

A. Project1,project4

B. Project2,project4

C. Project3,project4

D. None of them