Question: 20) You are considering the following two mutually exclusive projects which will provide cash flows over 3 years. The required rate of return is 12%
20) You are considering the following two mutually exclusive projects which will provide cash flows over 3 years. The required rate of return is 12% for project A and 11.75% for project B. The initial cost for Project A is $55,000, and the initial cost for Project B is $79,900. The cash flows for Project. A in years 13 are, respectively, $37,300,$24,600, and $10,000. The cash flows for Project B in years 13 are, respectively, $34,700,$65,800, and $0. You should accept Project because its NPV is greater than that of the other project. A) A: $1,449.26 B) B; $966.61 (C) A: 51,190.57 D) B;51,324.08 E) 8;51,821.02 F) None of the abene
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