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You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight - line depreciation to a zero book value over
You are considering the following two mutually exclusive projects. Both projects will be depreciated using straightline depreciation to a zero book value over the life of the project.
Neither project has any salvage value. Based upon the discounted payback period and the information provided in the problem, you should:
Project A Project B
Year Cash flow Cash flow
Required rate of return
Required payback period years years
Required AAR
A accept both project A and project B
B reject both project A and project B
C accept project A and reject project B
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