Porter Co.is analyzing two projects for the future.Assume that only one project can be selected. The payback period in years for Project X is:
A)2.00.
B)3.83.
C)3.50.
D)2.83.
E)4.00.

Question

Porter Co.is analyzing two projects for the future.Assume that only one project can be selected.  The payback period in years for Project X is:
A)2.00. 
B)3.83. 
C)3.50. 
D)2.83. 
E)4.00.

Quizplus · Accepted Answer

The payback period for Project X is 2.83 years, while the payback period for Project Y is 3.25 years. Therefore, Project X has a shorter payback period and is the better choice.

Porter CoIs Analyzing Two Projects for the Future