Question: Suppose your firm is considering two mutually exclusive, required projects with the cash fiows shown as follows. The required rate of return on projects of

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

Suppose your firm is considering two mutually exclusive, required projects with the cash fiows shown as follows. The required rate of return on projects of both of their risk class is 8 percent, and the maximum allowable payback and discounted paybock statistic for the projects are two and three years, respectively. Use the discounted payback decision rule to evaluate these projects; which one(s) should be accepted or rejected? Multiple Choice Accept both A and 8 Peject A, accept B Accept A, reject B Accept neither A nor B

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