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URGENT DUE LESS THAN AN HOUR Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year

URGENT DUE LESS THAN AN HOUR

Consider the following two projects:

Project

Year 0

Cash Flow

Year 1

Cash Flow

Year 2

Cash Flow

Year 3

Cash Flow

Year 4

Cash Flow

Discount

Rate

A

100

40

50

90

N/A

0.12

B

73

30

30

30

30

0.12

The payback period for project A is closest to:

A. 2.3 years

B. 2.1 years

C. 1.9 years

D. 2.5 years

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