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.