In considering the payback period for three projects, Fly Corp. gathered the following data about cash flows: | Cash Flows by Year
|
|---|
| Year 1
| Year 2
| Year 3
| Year 4
| Year 5
|
|---|
Project A | $ (10,000) | $ 3,000 | $ 3,000 | $ 3,000 | $ 3,000 | Project B | (25,000) | 15,000 | 15,000 | (10,000) | 15,000 | Project C | (10,000) | 5,000 | 5,000 | | |
Which of the projects will achieve payback within three years?
|
a. | Project B only. | |
b. | Projects A, B, and C. | |
c. | Projects B and C. | |
d. | Projects A and C. |
|
