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. 
Should you accept or reject these projects based on payback analysis?
A) accept Project A and reject Project B
B) reject Project A and accept Project B
C) accept both Projects A and B
D) reject both Projects A and B
E) You cannot make this decision based on payback analysis.
Correct Answer:
Verified
Correct Answer:
Verified
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