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QUESTION 6 Consider the cash flow of the two projects depicted in Table 3. If Wise Guy Inc. uses payback period rule to choose projects,
QUESTION 6 "Consider the cash flow of the two projects depicted in Table 3. If Wise Guy 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 -12,000 -3,000 Time 1 9,000 3,000 Time 2 9,000 3,000 Time 3 12,000 3,000 O Project A. O Project B. O Project A and Project B have the same ranking. O Cannot calculate a payback period without a discount rate. QUESTION 7 "Consider the cash flow of the two projects depicted in Table 3. If Wise Guy Inc. uses IRR 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." O Project A. O Project B. O Project A and Project B have the same ranking. O Cannot calculate a payback period without a discount rate
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