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: Year

(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)

1 33,000 0 2 33,000 0 3 33,000 0 4 33,000 0 5 33,000 220,000 If the appropriate discount rate on these projects is 10 percent, which would be chosen and why?

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