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Siegel Industries is considering two capital budgeting projects. Project A requires an initial investment of $48,000. It is expected to produce net annual cash fl
Siegel Industries is considering two capital budgeting projects. Project A requires an initial investment of $48,000. It is expected to produce net annual cash fl ows of $7,000. Project B requires an initial investment of $75,000 and is expected to produce net annual cash flows of $12,000. Using the cash payback technique to evaluate the two projects, Siegel should accept: Question 15 Answer a. Project A because it has a shorter cash payback perioD. b. Project B because it has a shorter cash payback perioD. c. Project A because it requires a smaller initial investment. d. Project B because it produces a larger net annual cash flow
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