Question: 9909's You are considering two mutually exclusive projects with the following cash ows. Will your choice between the two projects differ if the required rate

 9909's You are considering two mutually exclusive projects with the following

9909's You are considering two mutually exclusive projects with the following cash ows. Will your choice between the two projects differ if the required rate of return is 8 percent rather than 11 percent? If so, what should you do? Year Project A Project B 0 -$240,000 -$198,000 1 $ 0 $110,800 2 $ 0 $ 82,500 3 $325,000 $ 45,000 yes; Select A at 8 percent and B at 11 percent. yes; Select B at 8 percent and A at 11 percent. yes; Select A at 8 percent and select neither at 11 percent. no; Regardless of the required rate, project A always has the higher NPV. no; Regardless of the required rate, project B always has the higher NPV

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