Question: 2. Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of

with the cash flows shown below. The required rate of return on

projects of both of their risk class is 8 percent, and that

the maximum allowable payback and discounted payback statistic for the projects is

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects is 2 years tor both. Use the discounted payback decision rule to evaluate these projects which one(s) should it be accepted or rejected? Mulique Chose inject A eccepte reject A, accept B accept neither A nor B accept both A and B accept A, reject B Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their tisk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Use the Pl decision rule to evaluate these projects; which one(s) should it be accepted or rejected? Mumple Choice Accept boht A and a Accept both A and B Reject A, occept B Accept A, reject B Accept nether A nor B

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