Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below.

-If WiseGuy Ltd uses the payback period rule to choose projects, which of the projects (Project A or Project B) will rank highest?

• A)Project A
• B)Project B
• C)Project A and Project B have the same ranking.
• D)Cannot calculate a payback period without a discount rate.

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Definitions:

Transferor

An entity or person who transfers or conveys rights, property, or other assets to another party, the transferee.

Rights

Entitlements or freedoms granted by legal, social, or moral principles that are inherent to all human beings.

HDC (Holder in Due Course)

A holder in due course is a party who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original issuer or transferee.

Promise

A declaration or assurance that one will do a particular thing or that guarantees a particular outcome.