Author Question: Evaluate the following projects using the payback method assuming a rule of 3 years for payback. ... (Read 83 times)

berenicecastro

  • Hero Member
  • *****
  • Posts: 581
Evaluate the following projects using the payback method assuming a rule of 3 years for payback.
 
  Year Project A Project B
  0 -10,000 -10,000
  1 4,000 4,000
  2 4,000 3,000
  3 4,000 2,000
  4 0 1,000,000
 
  A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because it's payback period is longer than 3 years.
  B) Project B should be accepted because even though the payback period is 2.5 years for Project A and 3.001 for project B, there is a 1,000,000 payoff in the 4th year in Project B.
  C) Project B should be accepted because you get more money paid back in the long run.
  D) Both projects can be accepted because the payback is less than 3 years.

Question 2

Institutional investors are professional investors who work on behalf of individuals, business, and government.
 
  Indicate whether the statement is true or false



Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Answer to Question 1

A

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

For a complete list of videos, visit our video library