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Business, 07.05.2020 09:01 dragonstar6281

Samuelson Electronics has a required payback period of three years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 2.9 years and a net present value of $4,200. Project B has an expected payback period of 3.1 years with a net present value of $26,400. Which project(s) should be accepted based on the payback decision rule?

A.) Project A only

B.) Project B only

C.) Both A and B

D.) Neither A nor B

E.) Either, but not both projects

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Answers: 1

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