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) 3.92 years; 3.64 years; $780.85; $1,211.48; accept both Projects
B) 3.92 years; 3.79 years; -$17,108.60; $1,211.48; accept Project B only
C) 3.96 years; 3.42 years; -$19,764.06; -$10,566.02; 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
Correct Answer:
Verified
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