Question
Assuming that Projects A and B are INDEPENDENT, what would be the correct decision using the payback decision rule if the payback cutoff period is
Assuming that Projects A and B are INDEPENDENT, what would be the correct decision using the payback decision rule if the payback cutoff period is 4 years?
| Project | NPV | IRR | Payback Period |
| A | $5.5 million | 3.66% | 3.6 years |
| B | $5.8 million | 3.33% | 4.1 years |
| a. | Additional information needed. | |
| b. | Reject both projects | |
| c. | Accept Project B | |
| d. | Accept both projects | |
| e. | Accept Project A |
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Investing With Stock Options
Authors: Marie-jeanne Abadie
1st Edition
0681418893
