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TABLE 3 Project A Project B Time 0 -11,000 -10,000 Time 1 3,000 4,000 Time 2 8,000 3,000 Time 3 3,000 10,000 Consider the cash

TABLE 3

Project A

Project B

Time 0

-11,000

-10,000

Time 1

3,000

4,000

Time 2

8,000

3,000

Time 3

3,000

10,000

"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?"

A) Project A

B) Project B

C) Project A and Project B have the same ranking.

D) Cannot calculate a payback period without a discount rate.

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