Question
Portland Gaming, Inc. uses payback to evaluate potential projects and has a required payback period of four years for all projects. Currently, Portland is evaluating
Portland Gaming, Inc. uses payback to evaluate potential projects and has a required payback period of four years for all projects. Currently, Portland is evaluating two independent projects. Project A has an expected payback period of 3.6 years and a net present value of $8,400. Project B has an expected payback period of 4.2 years with a net present value of $26,800. Which projects should be accepted based on the payback decision rule?
| Project A only | ||
| Project B only | ||
| Both A and B | ||
| Neither A nor B | ||
| Answer cannot be determined based on the information given. |
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QFinance The Ultimate Resource
Authors: Various Authors
1st Edition
1849300003, 978-1849300001
