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Davis Corporation has an investment policy that requires acceptable projects to recover all costs within 3 years. The corporation uses the discounted payback method to
Davis Corporation has an investment policy that requires acceptable projects to recover all costs within 3 years. The corporation uses the discounted payback method to assess potential projects and uses a WACC of 10%. The cash flows for two independent projects are shown below: Year | Cash Flow A Cash Flow B - 100.000 |-$80,000 40,000 50.000 40,000 20,000 40,000 30.000 30,000 In which investment project(s) should the company invest? Project A only. Neither Project A nor Project B. Project A and Project B. O Project B only. Cannot be determined without additional information
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