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Millers Motor has a required payback period of two years for all of its projects. Currently, the firm is analyzing two independent projects. Project A
Millers Motor has a required payback period of two years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 1.5 years and a net present value of $50. Project B has an expected payback period of 2.75 years with a net present value of $1500. Which project(s) should be accepted based on the payback period decision rule?
A. Both A and B
B. Project A only
C. Project B only
D. Neither A nor B
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