Company accepts projects with payback periods

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Reference no: EM131057686

Project H requires an initial investment of $100.,000 and produces annual cash flows of $50,000, $40,000, and $30,000. Project T requires an initial investment of $100,000 and the produces annual cash flows of $30,000, $40,000, and $50,000. The projects are mutually exclusive. The company accepts projects with payback periods of 3 years or less. A) Project H will be accepted. B) Project T will be accepted. C) H and T will both be accepted. D) Neither projected will be accepted.

Reference no: EM131057686

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