9-2 Comparing payback period and discounted payback period Nielsen, Inc is...
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9-2
Comparing payback period and discounted payback period Nielsen, Inc is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years Given the following four projects' cash flows and using a discount rate of 10%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period Which projects that would have been accepted under payback penod method will now be rejected under the discounted payback perod method? (Select the best response ) Data Table A. Project 4 OB. Project 1 c. Project 3 (Click on the following icon in order to copy its contents into a spreadsheet OD. None of them w Initial Cost Year 1 Year 2 Year 3 $13.000 $5,333 $5,333 $5,333 2 $16.000 S8.000 $6,500 $5.000 HC $8.000 $3.000 $3.500 $4.000 CA $21,000 $12,000 $11.000 $ 0 Print Done
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