Between projects A and B,project A will be considered a superior financial undertaking if it has:
A)a shorter payback period than project B.
B)a lower average rate of return than project B.
C)a lower net present value than project B.
D)a longer payback period than project B.

Question

Quizplus · Accepted Answer

A shorter payback period means that the project will recoup its initial investment more quickly, which is generally seen as a positive financial aspect. Therefore, project A being superior to project B in terms of financial undertaking if it has a shorter payback period.

Between Projects a and B,project a Will Be Considered a Superior