Question: A company is at two mutually exclusive projects with the following cash flows. If the company has a required return for new projects of 11%,
A company is at two mutually exclusive projects with the following cash flows. If the company has a required return for new projects of 11%, what should they do?
| Year | Project A | Project B |
| 0 | $ (490,000) | $ (490,000) |
| 1 | 280,000 | 50,000 |
| 2 | 125,000 | 125,000 |
| 3 | 100,000 | 250,000 |
| 4 | 100,000 | 180,000 |
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