Multiple Choice
You are considering the following two mutually exclusive projects. 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. 
Required rate of return 10% 13%
Required payback period 2.0 years 2.0 years
Based on the net present value method of analysis and given the information in the problem,you should:
A) accept both project A and project B.
B) accept project A and reject project B.
C) accept project B and reject project A.
D) reject both project A and project B.
E) accept whichever one you want as they represent equal opportunities.
Correct Answer:
Verified
Correct Answer:
Verified
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