Question: 7.2 You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the

 7.2 You are considering the following two mutually exclusive projects. Both

7.2 You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Project A Project B Year Cash Flow Year Cash Flow 0 -R75 000 0 -R70 000 1 R19 000 1 R10 000 2 R48 000 2 R16 000 3 R12 000 3 R72 000 Required rate of return 10 per cent 13 per cent Based on the net present value method of analysis and given the information above, which project should you accept project A or project B

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