Use the information for the question(s) below. Project A - 10,000 Project B - 10,000 Time 0 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest? O 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.
Use the information for the question(s) below. Project A - 10,000 Project B - 10,000 Time 0 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest? O 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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2 f
Transcribed Image Text:Use the information for the question(s) below.
Project A
- 10,000
Project B
- 10,000
Time 0
Time 1
5,000
4,000
Time 2
4,000
3,000
Time 3
3,000
10,000
If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest?
O 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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