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Project a Has a Predicted Payback Period of 2

Question 57

Multiple Choice

Project A has a predicted payback period of 2.5 and Project B has a predicted payback period of 5. Based on this information we can conclude:


A) Project A is preferred to Project B
B) Project B provides twice the return of Project A
C) Project B is preferred to Project A, but it is not necessarily twice as profitable
D) More information should be gathered before deciding on which project, if either, is desirable

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