Question: 0 You are considering the following two mutually exclusive projects. The required rate of return is 15.6 percent for project A and 13.8 percent for

 0 You are considering the following two mutually exclusive projects. The

0 You are considering the following two mutually exclusive projects. The required rate of return is 15.6 percent for project A and 13.8 percent for project B. Which project should you accept and why? Year Project A Project B ($500,000) ($50,000) 1 238,000 41,000 332,000 20,000 190,000 10,000 2 3 0 Select one: a. project B; because it has lower cost of capital b. project A; because its NPV is $78,458 more than the NPV of project B o c. project B; because its IRR is 1% higher than the IRR of project A d. project B; because its NPV is $8,458 higher than the NPV of project A e. project A; because its NPV is $69,059 more than the NPV of project BV 0

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