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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both
Suppose your firm is considering two 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 payback and discounted payback statistic for the projects are 2 and 3 years, respectively. 0 36,00026,000 46,000 17,000 46,000 26,000 36,000 66,000 2 3 Time Project A Cash Flow Project B Cash Flow Use the Pl decision rule to evaluate these projects; which one(s) should it be accepted or rejected? reject A, accept B O accept A, reject B O accept neither A nor E O accept both A and B
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