Based Strictly on the Payback Method,which Project Is Preferred

question 43

Multiple Choice

Based strictly on the payback method,which project is preferred?

• A)Project A because the payback for A of 1.92 years is less than the payback for B of 2.23 years.
• B)Project A because the payback for A of 2.23 years is greater than the payback for B of 1.92 years.
• C)Project B because the payback for B of 2.23 years is greater than the payback for A of 1.92 years.
• D)Project B because the sum of the total cash inflows less the outflows = $20,000 for B but only $14,000 for A.

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