You are considering two mutually exclusive projects project, Ask an Expert

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You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Project B has cash flows of -$81,000, $20,100, $22,200, and $74,800 for years 0 to 3, respectively. Both projects have a required 2.5-year payback period. Should you accept or reject these projects based on payback analysis?

A) Accept Project A and reject Project B.

B) Reject Project A and accept Project B.

C) Accept both Projects A and B.

D) Reject both Projects A and B.

E) You should not use payback; use another method of analysis.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91548095

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