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Samuelson Electronics has a required payback period of 4 years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 3.1 years
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Samuelson Electronics has a required payback period of 4 years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 3.1 years and a net present value of $42,000. Project B has an expected payback period of 4.1 years with a net present value of $2,640. Which project(s) should be accepted based on the payback decision rule?

User Michael Sharek
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User Talha Rasool
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