Multiple Choice
You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. 
You should _____ Project A and _____ Project B based on the payback period of each project.
A) accept; accept
B) accept; reject
C) reject; accept
D) reject; reject
E) The payback method should not be used to determine which of these projects should be accepted.
Correct Answer:
Verified
Correct Answer:
Verified
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