14. Two projects are under consideration. Year A B 0 ($3,400) ($4,500) 1 $2,750 $1,000 2 $2,750 $2,000 3 $2,750 $5,000 Which project should be selected if the simple payback period method is used to make the determination? Show your work.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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14.
Two projects are under consideration.
Year
A
B
0
($3,400)
($4,500)
1
$2,750
$1,000
2
$2,750
$2,000
3
$2,750 $5,000
Which project should be selected if the simple payback period method is used to make the
determination? Show your work.
Transcribed Image Text:14. Two projects are under consideration. Year A B 0 ($3,400) ($4,500) 1 $2,750 $1,000 2 $2,750 $2,000 3 $2,750 $5,000 Which project should be selected if the simple payback period method is used to make the determination? Show your work.
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