Boston Corp.is evaluating three projects.Each project will return a total of $600,000 to the company in cash flows over a three-year period.The cash flows for the three projects are as follows: Using the payback period method,which project represents the best investment for Boston?
A)Project A
B)Project B
C)Project C
D)All projects are equally good investments.

Question

Boston Corp.is evaluating three projects.Each project will return a total of $600,000 to the company in cash flows over a three-year period.The cash flows for the three projects are as follows:  Using the payback period method,which project represents the best investment for Boston?
A)Project A 
B)Project B 
C)Project C 
D)All projects are equally good investments.

Quizplus · Accepted Answer

The Answer of Boston Corp.is evaluating three projects.Each project will return a total of $600,000 to the company in cash flows over a three-year period.The cash flows for the three projects are as follows:  Using the payback period method,which project represents the best investment for Boston?
A)Project A 
B)Project B 
C)Project C 
D)All projects are equally good investments.