The longer the payback period

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Reference no: EM131978742

1. For a given project life, the longer the Payback Period

the higher the IRR.

the lower the IRR.

there is no relationship between Payback Period and other techniques.

the higher the NPV.

2. Plan W has 100,000 shares selling for $10, EPS of $1.00 and $500,000 of debt. Plan M has 80,000 shares selling for $9, EPS of $1.10 and $900,000 of debt. Which plan should be chosen, and why?

M because the market value of the company is higher.

W because there is less debt.

W because the stock price is higher.

M because EPS is higher.

Reference no: EM131978742

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