Three projects have the following initial outlays and free cash flows.If these are mutually exclusive, which projects would a firm using the payback rule accept if the cut-off period is three years?(20 Points)

The Payback Period Rule states that a company will accept a project if:

PaybackConsider two projects: Project A and Project B. Project A requires an initial investment of ₹50 lakh and Project B requires an initial investment of ₹30 lakh. The expected cash flows for the two projects are as below (in ₹):Year 1 2 3 4Cash flow for Project A 10 40 15 15Cash flow for Project B 10 10 15 20Using the payback period method here, which project would you select?Project AProject B

Multiple Choice QuestionA company is considering two projects. Project 1 has an initial investment of $60,000 and expected cash inflows of $20,000 each year for 5 years. Project 2 has an initial investment of $80,000 and expected cash inflows of $20,000 each year for 10 years. Using the payback period as the evaluation method, which investment should be chosen by management?Multiple choice question.Project 2 with total cash inflows of $200,000Project 1 with payback period of 3 yearsProject 2 with payback period of 4 yearsProject 1 with total cash inflows of $100,000

A project that costs $24,000 today will generate cash flows of $7,900 per year for seven years. What is the project's payback period?

What is the payback period for the following set of cash flows?  Year Cash Flow0 −$ 4,200       1 1,300       2 1,400       3 1,900       4 2,800         Multiple Choice2.81 years2.93 years2.74 years2.79 years3.09 years