Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the payback criterion?
A)Project A
B)Project B
C)Project C
D)Project D

Question

Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the payback criterion? 
A)Project A 
B)Project B 
C)Project C 
D)Project D

Quizplus · Accepted Answer

Project A has the shortest payback period of 2 years, which is preferred by the payback criterion. However, Project A has a negative net present value and a lower internal rate of return compared to Projects C and D. Therefore, while Project A may be preferred by the payback criterion, it may not be the best choice overall considering the other analysis measures.

Refer to the Table Below,which Shows the Results of Payback,net