2. Two projects being considered are mutually exclusive and have the following projected cash flows:. If the

required rate of return on these projects is 11 percent, which would be chosen and why?

	Project A	Project B
Year	Cash Flow	Cash Flow
0	-40,000	-40,000
1	15,625	0
2	15,625	0
3	15,625	0
4	15,625	0
5	15,625	99,500

3. Two projects being considered are mutually exclusive and have the following projected cash flows:. If the

required rate of return on these projects is 6 percent, what is each projects NPV?

	Project A	Project B
Year	Cash Flow	Cash Flow
0	-80,000	-80,000
1	20,000	0
2	20,000	0
3	20,000	0
4	20,000	0
5	20,000	100,000