Samuelson Electronics has a required payback period of three years for all of it

Question

Samuelson Electronics has a required payback period of three years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 2.8 years and a net present value of $6,800. Project B has an expected payback period of 3.1 years with a net present value of $28,400. Which projects should be accepted based on the payback decision rule? Project A only Project B only Both A and B Neither A nor B Answer cannot be determined based on the information given.

Explanation / Answer

Yes.. It's project A only.. Please Rate :-)

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