A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:
Project "A" - Initial Investment = $40,000 & End-of-Year Cash Flows = $60,000
Project "B" - Initial Investment = $90,000 & End-of-Year Cash Flows = $160,000
If the firm above has a required payback of two (2) years, they shold _____.
accept projects A & B, accept project A & reject B, reject project A & accept B, or reject both
please advise answer & show why - thanks!© BrainMass Inc. brainmass.com March 4, 2021, 6:13 pm ad1c9bdddf
1. Projects are mutually exclusive so only once can be accepted.
2. Criteria: ...