Samuelson Electronics Has a Required Payback Period of Three Years

Multiple Choice

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