question archive Consider the following two independent investment projects: Cash flows of project A: 0123 -130 100 50 5 Cash flows of project B: 012345 -130 90 40 40 40 40 If management only accepts projects that pay back in 3 years or less, according to the discounted payback period rule, which projects will be selected? Use a discount rate of 10%
Subject:FinancePrice: Bought3
Consider the following two independent investment projects:
Cash flows of project A: 0123
-130 100 50 5 Cash flows of project B:
012345
-130 90 40 40 40 40
If management only accepts projects that pay back in 3 years or less, according to the discounted payback period rule, which projects will be selected? Use a discount rate of 10%.