New project that requires an initial cash investment

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Reference no: EM131323878

1. Both Projects A and B are acceptable as independent projects. However, the selection of either one of these projects eliminates the option of selecting the other project. Which one of the following terms best describes the relationship between Project A and Project B?

Mutually exclusive

Conventional

Multiple choice

Dual return

Crosswise

2. Services United is considering a new project that requires an initial cash investment of $26,000. The project will generate cash inflows of $2,500, $11,700, $13,500, and $10,000 over each of the next four years, respectively. How long will it take to recover the initial investment?

2.74 years

2.87 years

2.99 years

3.27 years

3.68 years

Reference no: EM131323878

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