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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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