(Using NPV for mutually exclusive projects) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows If the appropriate discount rate on these projects is 10 percent, which would be chosen and why Year Project A Cash Flow Project B Cash Flow 0 $(100,000) $(100,000) 1 33,000 0 2 33,000 0 3 33,000 0 45 33,000 0 33,000 220,000

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Question: (Using NPV for mutually exclusive projects) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: If

(Using NPV for mutually exclusive projects) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project A Cash Flow Project B Cash Flow 0 $(100,000) $(100,000)

If the appropriate discount rate on these projects is 10 percent, which would be chosen and why?

Year Project A Cash Flow Project B Cash Flow 0 $(100,000) $(100,000) 1 33,000 0 2 33,000 0 3 33,000 0 45 33,000 0 33,000 220,000

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