You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation

You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.     Should you accept or reject these projects based on payback analysis?    A.  accept Project A and reject Project B B.  reject Project A and accept Project B C.  accept both Projects A and B D.  reject both Projects A and B E.  You cannot make this decision based on payback analysis.

96.

You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.     Should you accept or reject these projects based on the profitability index?    A.  accept Project A and reject Project B B.  reject Project A and accept Project B C.  accept both Projects A and B D.  reject both Projects A and B E.  You cannot make this decision based on the profitability index. Because these are mutually exclusive projects, the PI rule should not be applied.

97.

You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.     Should you accept or reject these projects based on the average accounting return?    A.  accept Project A and reject Project B B.  reject Project A and accept Project B C.  accept both Projects A and B D.  reject both Projects A and B E.  You cannot make this decision based on the information provided. The AAR cannot be computed because the net income was not provided.