Payback period was the earlest selection criterion. The Is a "break-even" calculation in the sense that if a project's cash flows come in at the expected rate, the project will break even. The equation is: Payback=yearspriorto+NamberVamonntentatnatsfullrecovery The a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) All dollars recelved in eliferent years are given Cash flows beyend the payback year are ighored. (3) The paybock merely indicates when a project's imvestment will be recoyered. There is no necessary relationship between a Qiven paybock and investor weath maximiation. A variant of the regular paybeck is the discounted payback, Unike regular payback, the discounted parback cansiders. disregarts cash flows. the payback year. In addition, there is no specife payback fule to justify project acceptance. Both metheds provide information about . and risk Quantitative Problemt Bellinger induythes is conselerng two projects for inctusion in its captal budget, and yeu have been anked to de the aralysis. Both projects afieritax cash flews are Ahewh on the time line below. Degreciation, salvage values, net operating working copital reguirements, and tax effects are all included in these cash flows, floth projects What is project As payback? Do not round intermedate caicutations. Round yoar anseer to four decinat places. years Whiat is Project A 'a disiounted paybuck? Do not round intermediate calculations. lhound your ansher to four decimal places. vears What is Projed Hs bayback bo not roune ioferredate calodations, Round your answer to four decimal places- What is Frojed H' discoureed pewbach? po not roand intermedtate calculotons, Found you answer fo four decimal placis. Payback period was the earlest selection criterion. The Is a "break-even" calculation in the sense that if a project's cash flows come in at the expected rate, the project will break even. The equation is: Payback=yearspriorto+NamberVamonntentatnatsfullrecovery The a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) All dollars recelved in eliferent years are given Cash flows beyend the payback year are ighored. (3) The paybock merely indicates when a project's imvestment will be recoyered. There is no necessary relationship between a Qiven paybock and investor weath maximiation. A variant of the regular paybeck is the discounted payback, Unike regular payback, the discounted parback cansiders. disregarts cash flows. the payback year. In addition, there is no specife payback fule to justify project acceptance. Both metheds provide information about . and risk Quantitative Problemt Bellinger induythes is conselerng two projects for inctusion in its captal budget, and yeu have been anked to de the aralysis. Both projects afieritax cash flews are Ahewh on the time line below. Degreciation, salvage values, net operating working copital reguirements, and tax effects are all included in these cash flows, floth projects What is project As payback? Do not round intermedate caicutations. Round yoar anseer to four decinat places. years Whiat is Project A 'a disiounted paybuck? Do not round intermediate calculations. lhound your ansher to four decimal places. vears What is Projed Hs bayback bo not roune ioferredate calodations, Round your answer to four decimal places- What is Frojed H' discoureed pewbach? po not roand intermedtate calculotons, Found you answer fo four decimal placis