Vhich projects that would have been accepted under payback period method will now be rejected under the discounted payback period method? (Select esponse.) O A. Project 1 о в. Project 4 O C. Project 3 O D. None of them 1 Data Table |(Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project 1 Project 2 Project 3 Project 4 Initial Cost $14,000 $14,000 $9,000 $3,000 $21,000 $12,000 $11,000 Year 1 $5,667 $7,000 Year 2 $5,667 $5,500 $3,500 Year 3 $5,667 $4,000 $4,000 Print Done
Vhich projects that would have been accepted under payback period method will now be rejected under the discounted payback period method? (Select esponse.) O A. Project 1 о в. Project 4 O C. Project 3 O D. None of them 1 Data Table |(Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project 1 Project 2 Project 3 Project 4 Initial Cost $14,000 $14,000 $9,000 $3,000 $21,000 $12,000 $11,000 Year 1 $5,667 $7,000 Year 2 $5,667 $5,500 $3,500 Year 3 $5,667 $4,000 $4,000 Print Done
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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Transcribed Image Text:Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar
projects. The cutoff period will remain at three years. Given the following four projects' cash flows, , and using a discount rate of 7%, determine which projects it
would have accepted under the payback period and which it will now reject under the discounted payback period.
Which projects that would have been accepted under payback period method will now be rejected under the discounted payback period method? (Select the best
response.)
O A. Project 1
Data Table
O B. Project 4
OC. Project 3
O D. None of them
(Click on the following icon P in order to copy its contents into a spreadsheet.)
Cash Flow
Project 1
Project 2
Project 3
Project 4
Initial Cost
$14,000
$9,000
$14,000
$7,000
$5,500
$21,000
$12,000
Year 1
$5,667
$3,000
Year 2
$5,667
$3,500
$11,000
Year 3
$5,667
$4,000
$4,000
$
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