Quattro, Inc

Multiple Choice

Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a 4-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