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

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 12 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time ProjectA 34,000 ash Flow 24,000 44,000 5,000 Project B44,000 Cash Flow 24,000 34,000 64,000 Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected

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