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which project is preferable if we use payback period for the Capital Budgeting and why? Which project is preferable if we use Net Present Value

  1. which project is preferable if we use payback period for the Capital Budgeting and why?
  2. Which project is preferable if we use Net Present Value and the interest rate is 10%?
  3. In your opinion which method is favorable PBP or NPV?

Projects

Year

Zeta

Omega

0

$ (50,000)

$ (45,000)

1

20,000

42,000

2

15,000

9,000

3

30,000

1,850

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