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Suppose your firm is considering Iwo mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both

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Suppose your firm is considering Iwo mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 9 percent, and that the maximum allowable pay back and discounted payback statistic for the projects are 2 and 3 years. respectively. Use the discounted pay bock decision rule to evaluate these projects: which one(s) should be accepted or rejected? accept both A and B accept A. reject B accept neither A nor B reject A. accept B

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