QUESTION 16
An investor is analysing 3 investment options (Project A, B and C). The payback period of Project A is 3.2 years, while Project 8 is 2.8 years and Project C is 42 years. The investor has a maximum acceptable payback period of 3 years. Based on the following data which of the following statements is incorrect?
O a. All three projects have acceptable payback periods.
O b. Project B is the superior option based on the payback period.
O c. Project A is better than project C.
O d. If the maximum acceptable payback period was increased to 5 years all projects would be acceptable.
