Project A has a payback period of 8 years, while Project B has a payback period of 7 years. The payback policy maximum is 6 years. Which project should be accepted?
A) Project A, if they are mutually exclusive
B) Project B, if they are mutually exclusive
C) Both Project A and Project B
D) Neither Project A or Project B
Correct Answer:
Verified
Q11: If a project's NPV is negative:
A)the project
Q12: The internal rate of return (IRR)is simply
Q13: Which of the following is most correct?
A)Stand-alone
Q14: The money needed to get a project
Q15: Payback does not include the following in
Q17: What are the two primary drawbacks to
Q18: Risk varies with project type, and the
Q19: Capital budgeting involves how companies spend:
A)day to
Q20: Mutually exclusive projects:
A)are usually different alternatives to
Q21: A project's NPV profile will cross the
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