Use the Table for the Question(s) Below -The Payback Period for Project B Is Closest To?
A)

question 22

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
$\begin{array} { l c c c c c c } \hline \text { Project } & \begin{array} { c } \text { Year 0 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 1 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 2 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 3 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 4 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Discount } \\\text { Rate }\end{array} \\\hline \text { A } & - 100 & 40 & 50 & 60 & \text { N/A } & 0.15 \\\hline \mathrm { B } & - 73 & 30 & 30 & 30 & 30 & 0.15 \\\hline\end{array}$
-The payback period for project B is closest to?

• A) 2.4 years
• B) 2.0 years
• C) 2.5 years
• D) 2.2 years

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