Samuelson Electronics Has a Required Payback Period of Three Years

Multiple Choice

Samuelson Electronics has a required payback period of three years for all of its projects.Currently,the firm is analyzing two independent projects.Project A has an expected payback period of 2.8 years and a net present value of $6,800.Project B has an expected payback period of 3.1 years with a net present value of $28,400.Which projects should be accepted based on the payback decision rule?

A) Project A only
B) Project B only
C) Both A and B
D) Neither A nor B
E) Answer cannot be determined based on the information given.