Ridge NL Is Considering Investing in a New Project

question 19

Multiple Choice

Ridge NL is considering investing in a new project. Given the following information, which project would Ridge choose if a maximum payback period of 5.8 years is set?

• A) Project B, as the payback period is less than 5.8 years.
• B) Both projects, as the payback periods are less than 5.8 years.
• C) Project A, as the payback period is less than 5.8 years.
• D) Neither project, as both payback periods exceed 5.8 years.