Question: 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
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 9 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively Time: Project A Cash Flow Project B Cash Flow 0 1 2 3 -26,000 16,000 36,000 7000 -36,000 16,000 26,000 56,000 Use the Pl decision rule to evaluate these projects; accept the project with the higher Pl value. Multiple Choice reject A, accept B accept both A and B accept A rejecto accept neither Anor
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