Consider the following two mutually exclusive projects:  

Whichever project you choose, if any, you require a 15 percent return on your investment.  

a. If you apply the payback criterion, which investment will you choose? Why?  

b. If you apply the discounted payback criterion, which investment will you choose? Why?

Posted Date: 3/23/2013 5:29:36 AM | Location : United States

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