PAYBACK PERIOD

Given the cash flows of the four projects, A, B, C, and D, and using the Payback Period decision model, which projects do you accept and which projects do you reject with a three-year cut-off period for recapturing the initial cash outflow? Assume that the cash flows are equally distributed over the year for Payback Period calculations.

Question 2: Which is the best project to invest in?

Please show solutions and the answers below.