Two Projects A and B 0 Discount Year Cash Flow (A) Cash Flow (B) factor 0 $ $ 1 $ $ $ (31,000) 20,800 11,800 4,200 (37,000) 25,400 12,200 10,600 $ 2 3 $ $ Required payback 2 The payback period of project Ais 1 86 The payback period of project Bis 1 95 Using payback period criteria, project A should be accepted (True, False) True True Using payback period criteria, project B should be accepted (True, False) Using payback period criteria, project B is better than project A (True False) False if project Breceives $25,000 as a cash flow for the third year, Using the payback period criteria, project B is better than project A (True, False) Choose

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Two Projects A and B 0 Discount Year Cash Flow (A) Cash Flow (B) factor 0 $ $ 1 $ $ $ (31,000) 20,800 11,800 4,200 (37,000) 25,400 12,200 10,600 $ 2 3 $ $ Required payback 2 The payback period of project Ais 1 86 The payback period of project Bis 1 95 Using payback period criteria, project A should be accepted  (True, False) True True Using payback period criteria, project B should be accepted  (True, False) Using payback period criteria, project B is better than project A  (True  False) False if project Breceives $25,000 as a cash flow for the third year, Using the payback period criteria, project B is better than project A (True, False)  Choose

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Two Projects A and B 0 Discount Year Cash Flow (A) Cash Flow (B) factor 0 $ $ 1 $ $ $ (31,000) 20,800 11,800

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