Question: A firm is evaluating two projects that are independent with initial investments and cash flows as follows: Project A Project B End-of-Year Initial End-of-Year Initial
A firm is evaluating two projects that are independent with initial investments and cash flows as follows: Project A Project B End-of-Year Initial End-of-Year Initial Investment Cash Flows Investment Cash Flows $40,000 $20,000 -$90,000 $40,000 20.000 40,000 20,000 80,000 M the firm has a required discounted payback of three years with a WACC of 3.5%, it should O a. reject both the projects O b. reject Project A and accept Project B O c.accept Project A and reject Project B O d. accept Project A and Project B
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