Question: You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero

 You are considering the following two mutually exclusive projects with the

You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value Year 10 1 2 3 Project A $45,000 $17,500 $18,000 $22.500 Project B $40,000 $8.200 $14,600 $36.800 Required rate of return Required payback period Required accounting return Project A 8 percent 2 years 8.5 percen Project B 12 percent 2 years 9.5 percent You should accept Project because its net present value exceeds that of the other project by

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