Question
Suppose you are given the following cash flow schedule for Project A and Project B. Project A Project B Year 0 -10,000 -10,000 Year 1
Suppose you are given the following cash flow schedule for Project A and Project B.
| Project A | Project B | |
| Year 0 | -10,000 | -10,000 |
| Year 1 | 5,000 | 4,000 |
| Year 2 | 4,000 | 3,000 |
| Year 3 | 3,000 | 10,000 |
If WiseGuy Ltd uses the payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest?
Group of answer choices
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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Energy And Finance Sustainability In The Energy Industry
Authors: André Dorsman, Özgür Arslan-Ayaydin, Mehmet Baha Karan
1st Edition
3319322664, 978-3319322667
