a firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: project A project B
initial end of year initial end of year investement cash flows investement cash flows
$40,000 $20,000 $90,000 $40,000
20,000 40,000
20,000 80,000
if the firm in table 10.3 has a required payback of two years, it should ________.
A. reject Project A and accept Project B B. reject both the projects C. accept Project A and Project B D. accept Project A and reject Project B
