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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 9 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Use the NPV decision rule to evaluate these projects: which one(s) should it be accepted or rejected? Multiple Choice accept A, reject B accept both A and B reject A, accept B

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