Question: (2) Based on the NPV criterion, which project would you choose? Why? (8 points) A firm is considering the following two mutually exclusive projects A

(2) Based on the NPV criterion, which project would you choose?

(2) Based on the NPV criterion, which project would you choose? Why? (8 points)

A firm is considering the following two mutually exclusive projects A and B. The required rate of return is 15% for each project. Year Cash Flow (A) Cash Flow (B) 0 -$350,000 -$35,000 1 25,000 17,000 2 70,000 11,000 3 70,000 17,000 4 430,000 11,000

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