Question
Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff
Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows, LOADING... , and using a discount rate of 7 %, 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 best response.) A. Project 3 comma project 4 B. Project 2 comma project 3 C. Project 2 comma project 4 D. None of them
P9-6 (similar to) s Question Help Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows, and using a discount rate of 7%, 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 best response.) O A. Project 3, project 4 O B. Project 2, project 3 OC. Project 2, project 4 OD. None of them Data Table (Click on the following icon 2 in order to copy its contents into a spreadsheet.) Cash Flow Initial Cost Year 1 Year 2 Year 3 Project 1 $13,000 $5,333 $5,333 $5,333 Project 2 $10,000 $5,000 $3,500 $2,000 Project 3 $9,000 $3,000 $3,500 $4,000 Project 4 $21,000 $10,000 $13,000 $ 0 Print DoneStep by Step Solution
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