Comparing Payback Period and Discounted Payback Period – Neilsen Incorporated is switching from Payback Period
Comparing Payback Period and Discounted Payback Period – Neilsen Incorporated is switching from Payback Period to Discounted Payback Period for small dollar projects. The cut-off period will remain at 3 years. Given the following four projects cash flows and using a 10% discount rate, which projects that would have been accepted under Payback Period will now be rejected under Discounted Payback Period?
|Project Three||Project Four|