Table 10.3 A Firm Is Evaluating Two Projects That Are Mutually Exclusive

Multiple Choice

Table 10.3
A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:
-If the firm in Table 10.3 has a required payback of two years, it should ________.

A) accept Project A and Project B
B) accept Project A and reject Project B
C) reject Project A and accept Project B
D) reject both the projects