Consider the cash flow of the two projects depicted in Table 3. If WiseGuy Inc. uses payback period rule to choose proje

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Consider the cash flow of the two projects depicted in Table 3.
If WiseGuy Inc. uses payback period rule to choose projects, which
of the projects (Project A or Project B) will rank highest? "
TABLE 3
Project A
Project B
Time 0
-30,000
-30,000
Time 1
30,000
20,000
Time 2
0
10,000
Time 3
0
10,000
Project A.
Project B.
Project A and Project B have the same ranking.
Cannot calculate a payback period without a discount rate.
2.
Consider the cash flow of the two projects depicted in Table 3.
If WiseGuy Inc. uses IRR rule to choose projects, which of the
projects (Project A or Project B) will rank highest?
Project A.
Project B.
Project A and Project B have the same ranking.
Cannot calculate a payback period without a discount rate.