Question: 7,170 e. You are considering the following two mutually exclusive projects. The required rate of return is 13 percent for the project A and 10.5

 7,170 e. You are considering the following two mutually exclusive projects.

7,170 e. You are considering the following two mutually exclusive projects. The required rate of return is 13 percent for the project A and 10.5 percent for the project B. Prove with computation which the project to accept. Support your answer using NPV, IRR, cash payback period, and profitability index methods. Year 0 1 Project A $ (54,000) $ 36,300 $ 24,600 $ 9,500 Project B $ (78,000) $ 35,700 $ 62,800 $ 0 2 3 6 Q. VI {13 marks)

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