Question: Question 21 10 points Save Nguyen Inc. is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusive, equally

 Question 21 10 points Save Nguyen Inc. is considering Projects S

Question 21 10 points Save Nguyen Inc. is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the investment decision is made by choosing the project with the shorter payback, which wer is correct? WACC: 8% Year $350 550 0 CFS -5800 $250 $230 $300 CFL -$1,000 $600 5400 S150 Choose project A and reject project B because project A has shorter payback period. Choose project and reject project A because project B has shorter payback period. Choose project A and reject project B because project A has higher NPV. Choose project and reject project A because project A has higher NPV. Choose both projects because they both have positive NPV

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