Quattro, Inc.has the following mutually exclusive projects available.The company has historically used a four-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)2.782 years; 3.25 years; $ 7.090.12; $12,011.48; accept both Projects
B)3.92 years; 3.79 years; -$6,197.89; $14,693.39; accept Project B only
C)3.60 years; 3.95 years; -$6,197.89; -$14,693.39; reject both projects
D)3.96 years; 3.42 years; $17,780.85; -$1,211.48; accept Project A only
E)4.06 years; 3.79 years; $211.60; -$7,945.93; accept Project A only

Question

Quattro, Inc.has the following mutually exclusive projects available.The company has historically used a four-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)2.782 years; 3.25 years; $ 7.090.12; $12,011.48; accept both Projects 
B)3.92 years; 3.79 years; -$6,197.89; $14,693.39; accept Project B only 
C)3.60 years; 3.95 years; -$6,197.89; -$14,693.39; reject both projects 
D)3.96 years; 3.42 years; $17,780.85; -$1,211.48; accept Project A only 
E)4.06 years; 3.79 years; $211.60; -$7,945.93; accept Project A only

Quizplus · Accepted Answer

The Answer of Quattro, Inc.has the following mutually exclusive projects available.The company has historically used a four-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)2.782 years; 3.25 years; $ 7.090.12; $12,011.48; accept both Projects 
B)3.92 years; 3.79 years; -$6,197.89; $14,693.39; accept Project B only 
C)3.60 years; 3.95 years; -$6,197.89; -$14,693.39; reject both projects 
D)3.96 years; 3.42 years; $17,780.85; -$1,211.48; accept Project A only 
E)4.06 years; 3.79 years; $211.60; -$7,945.93; accept Project A only