Question
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
"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. "
Table 3
|
| Project A | Project B |
| Time 0 | -9,000 | -3,000 |
| Time 1 | 10,000 | 3,000 |
| Time 2 | 9,000 | 3,000 |
| Time 3 | 12,000 | 3,000 |
| Project 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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Public School Finance Decoded
Authors: Jay C. Toland
1st Edition
1475827679, 978-1475827675
