Stellar Inc. has two projects as follows:
Stellar Inc. has two projects as follows:
Project | Initial CF | CF1 | CF2 | CF3 | CF4 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
A | -2,400 | 800 | 1,150 | 1,000 | 1,850 | ||||||
B | -2,950 | 700 | 1,450 | 1,000 | 3,850 |
If Stellar set 2.49 years as a cut-off period for screening projects, which projects will be selected, using the payback period method? (Round answers to 2 decimal places, e.g. 125.25.)
Project A payback period | years | ||
|---|---|---|---|
Project B payback period | years | ||
| will be selected. | |||
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