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7. The Square Box is considering two projects, both of which have an initial cost of $35,000 and total cash inflows of $50,000. The cash

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7. The Square Box is considering two projects, both of which have an initial cost of $35,000 and total cash inflows of $50,000. The cash inflows of project A are $5,000,$10,000,$15,000, and $20,000 over the next four years, respectively. The cash inflows for project B are $20,000,$15,000,$10,000, and $5,000 over the next four years, respectively. Which one of the following statements is correct if The Square Box requires a 13 percent rate of return and has a required discounted payback period of 3.5 years? A. Both projects should be accepted. B. Both projects should be rejected. C. Project A should be accepted and project B should be rejected. D. Project A should be rejected and project B should be accepted. E. You should be indifferent to accepting either or both projects

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