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?
$$\begin{array} { | l | c | c | c | c | }
\hline h& \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline \text { Payback } & 4 & 5 & 4.5 & 3 \
\hline \text { NPV } & \$ 2,199 & \$ 201 & \$ 1,851 & \$ 510 \
\hline \text { IRR } & 20.24 \% & 11.81 \% & 19.64 \% & 12.59 \% \
\hline
\end{array}$$
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?
$$\begin{array} { | l | c | c | c | c | } 
\hline h& \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline \text { Payback } & 4 & 5 & 4.5 & 3 \
\hline \text { NPV } & \$ 2,199 & \$ 201 & \$ 1,851 & \$ 510 \
\hline \text { IRR } & 20.24 \% & 11.81 \% & 19.64 \% & 12.59 \% \
\hline
\end{array}$$
A)Project A
B)Project B
C)Project C
D)Project D

Quizplus · Accepted Answer

The payback criterion prefers the project with the shortest payback period, which is Project D with a payback period of 3 years.

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