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Ridge NL Is Considering Investing in a New Project

Question 36

Multiple Choice

Ridge NL is considering investing in a new project. Given the following information, which project would Ridge choose if a maximum payback period of 5.8 years is set? Ridge NL is considering investing in a new project. Given the following information, which project would Ridge choose if a maximum payback period of 5.8 years is set?   A)  Project B, as the payback period is less than 5.8 years. B)  Both projects, as the payback periods are less than 5.8 years. C)  Project A, as the payback period is less than 5.8 years. D)  Neither project, as both payback periods exceed 5.8 years.


A) Project B, as the payback period is less than 5.8 years.
B) Both projects, as the payback periods are less than 5.8 years.
C) Project A, as the payback period is less than 5.8 years.
D) Neither project, as both payback periods exceed 5.8 years.

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