Which project or projects should the firm accept and why

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Reference no: EM131337383

Valley Products, Inc. is considering two independent investments having the following cash flow streams:

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Valley uses a combination of the net present value approach and the payback approach to evaluate investment alternatives.

It requires that all projects have a positive net present value when cash flows are discounted at 10 percent and that all projects have a payback no longer than three years. Which project or projects should the firm accept? Why?

Reference no: EM131337383

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