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 | 4.66% | 3.6 years |
| B | $5.8 million | 4.33% | 4.1 years |
a. Additional information needed.
b. Reject both projects
c. Accept Project A
d. Accept both projects
e. Accept Project B
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Financial Accounting
Authors: Belverd E Needles, Marian Powers
10th Edition
0547193289, 9780547193281
