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Table 2: Project A Project B Time 0 -8,000 -4,000 Time 1 10,000 3,000 Time 2 8,000 6,000 Time 3 8,000 9,0000 Consider the cash
Table 2:
| Project A | Project B |
Time 0 | -8,000 | -4,000 |
Time 1 | 10,000 | 3,000 |
Time 2 | 8,000 | 6,000 |
Time 3 | 8,000 | 9,0000 |
Consider the cash flow of the two projects depicted in Table 3. If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest?
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