Question: 17 17. Here are the cash-flow forecasts for two mutually exclusive projects. Cash Flows (dollars) Project A Year Project B -100 30 50 70 -100
17. Here are the cash-flow forecasts for two mutually exclusive projects. Cash Flows (dollars) Project A Year Project B -100 30 50 70 -100 49 49 49 Which would you choose if the opportunity cost of capital is 12%? A. Project A, because it has higher NPV B. Project B, because it has higher NPV C. Both project A and B, because they both have positive NPV D. Neither project A nor B, because they both have negative NPV
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