You Are Analyzing a Project and Have Prepared the Following

Multiple Choice

You are analyzing a project and have prepared the following data: Required payback period 2.5 years
Required return 8.50%
Based on the payback period of _______ for this project,you should _______ the project.

A) 1.87 years; accept
B) 2.87 years; accept
C) 2.87 years; reject
D) 3.13 years; reject
E) 3.87 years; reject