Firm is considering two mutual exclusive-required project

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Suppose your firm is considering two mutual exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their rish class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years respectively. Time: 0; 1; 2; 3; Project A Cash Flow: -23,000; 13,000 33,000; 4,000 Project B Cash Flow: -33,000 13,000; 23,000; 53,000 Use rhe NPV decision rule to evaluate these projects; which one (s) should be accepted or rejected? a. reject A, accept B b. accept both A and B c. accept neither A nor B d. accept A, reject B. Please answer Asp, this is a time test.

Reference no: EM131980940

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