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

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 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. 0 Time 1 2 3 Project A Cash Flow -35,000 25,000 45,000 16,000 Project B Cash Flow - 45,000 25,000 35,000 65,000 Use the NPV decision rule to evaluate these projects, which one(s) should be accepted or rejected? Multiple Choice Accept both A ond Reject A, accept Accept A reject Multiple Choice Accept both A and B Reject A, accept B Accept A, reject B Accept neither A nor B

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