Howard Co. is considering two alternative investments. The payback period is 3.5 years for Investment A and 4 years for Investment B. 1. If management relies on the payback period, which investment is...

Howard Co. is considering two alternative investments. The payback period is 3.5 years for Investment A

and 4 years for Investment B.

1. If management relies on the payback period, which investment is preferred?

2. Will an investment with a shorter payback period always be chosen over an investment with a longer

payback period?