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

Suppose your firm is considering Iwo mutually exclusive, required projects with

Suppose your firm is considering Iwo mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 9 percent, and that the maximum allowable pay back and discounted payback statistic for the projects are 2 and 3 years. respectively. Use the discounted pay bock decision rule to evaluate these projects: which one(s) should be accepted or rejected? accept both A and B accept A. reject B accept neither A nor B reject A. accept B

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