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violin13 violin13
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4 years ago
Use the information for the question(s) below.
​Project AProject B
Time 0 -10,000-10,000
Time 15,0004,000
Time 24,0003,000
Time 33,00010,000


If WiseGuy Inc. uses payback period 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.
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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n00835996n00835996
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violin13 Author
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