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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

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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 of their risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. 0 33,000 1 23,000 2 43,000 3 14,000 Time: Project A Cash Flow Project B Cash Flow 43,000 23,000 33,000 63,000 Use the discounted payback decision rule to evaluate these projects, which onle(s) should it be accepted or rejected? reject A, accept B accept neither A nor B accept both A and B accept A reject B

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