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Quattro,Inc

Question 9

Multiple Choice

Quattro,Inc.has the following mutually exclusive projects available.The company has historically used a four-year cutoff for projects.The required return is 11 percent. Quattro,Inc.has the following mutually exclusive projects available.The company has historically used a four-year cutoff for projects.The required return is 11 percent.   The payback for Project A is ____ while the payback for Project B is ____.The NPV for Project A is _____ while the NPV for Project B is ____.Which project,if any,should the company accept? A) 3.92 years; 3.64 years; $780.85; $1,211.48; accept both Project A and B B) 3.92 years; 3.79 years; -$211.60; $1,211.48; accept Project B only C) 3.92 years; 3.79 years; $780.85; -$7,945.93; accept Project A only D) 4.06 years; 3.64 years; $780.85; $1,211.48; accept both Project A and B E) 4.06 years; 3.79 years; -$211.60; -$7,945.93; reject both projects The payback for Project A is ____ while the payback for Project B is ____.The NPV for Project A is _____ while the NPV for Project B is ____.Which project,if any,should the company accept?


A) 3.92 years; 3.64 years; $780.85; $1,211.48; accept both Project A and B
B) 3.92 years; 3.79 years; -$211.60; $1,211.48; accept Project B only
C) 3.92 years; 3.79 years; $780.85; -$7,945.93; accept Project A only
D) 4.06 years; 3.64 years; $780.85; $1,211.48; accept both Project A and B
E) 4.06 years; 3.79 years; -$211.60; -$7,945.93; reject both projects

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