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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 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time Prolect A Cash Flow Prolect B Cash Flow 0 30,00020,000 40,000 11,000 40,000 20,000 30,000 60,000 Use the Pl decision rule to evaluate these projects; which one() should it be accepted or rejected? accept A reject B accept both A and B accept neither A nor O reject A, accept B
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