The Square Box Is Considering Two Projects,both of Which Have

question 71

Multiple Choice

The Square Box is considering two projects,both of which have an initial cost of $35,000 and total cash inflows of $50,000.The cash inflows of project A are $5,000,$10,000,$15,000,and $20,000 over the next four years,respectively.The cash inflows for project B are $20,000,$15,000,$10,000,and $5,000 over the next four years,respectively.Which one of the following statements is correct if The Square Box requires a 13 percent rate of return and has a required discounted payback period of 3.5 years?

• A)Both projects should be accepted.
• B)Both projects should be rejected.
• C)Project A should be accepted and project B should be rejected.
• D)Project A should be rejected and project B should be accepted.
• E)You should be indifferent to accepting either or both projects.

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Definitions:

Anemia

A condition marked by a deficiency of red blood cells or hemoglobin in the blood, leading to fatigue, weakness, and shortness of breath.

Fat Consumption

The intake of fats through diet, which can influence health depending on the types and amounts consumed.

Binding Contracts

Agreements that are legally enforceable, requiring all parties involved to fulfill their obligations as stated.

Legally

Pertaining to the law or the practices and procedures prescribed by law.