ncovington ncovington

28-04-2024
Business

Answered

A company is considering the following projects initial investment and yearly cash inflows:
Project A
Initial investment
Year 1
Year 2
Year 3
Year 4
$300,000
$75,000
$75,000
$75,000
$75,000
Project B
$300,000
$100,000
$100,000
$100,000
$0
Using the payback method, Project A would be the preferred project.
True
False

Answer :

ssalerno171 ssalerno171

28-04-2024

Answer:

Therefore, the statement "False" is the correct answer as Project B would be the preferred project based on the payback method.

Explanation:

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