Matt is analyzing two mutually exclusive projects of similar size and has prepared the following...
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Accounting
Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives. Project A NPV $15,900 Payback Period 2.76 years Required Return 8.3% Project B NPV $14,693 Payback Period 2.51 years Required Return 8.0% Matt has been asked for his best recommendation given this information. His recommendation should be to accept:
| project B because it has the shortest payback period. | ||
| both projects as they both have positive net present values. | ||
| project A and reject project B based on their net present values. | ||
| project B and reject project A based on other criteria not mentioned in the problem. | ||
| project B and reject project A based on the discounted payback period. |
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