Question: A company is considering a two mutually exclusive projects A and B 2 3 1 YEARS PROJECT A CF -$15,000 $10,000 $8.000 $6,000 WACC -9%

A company is considering a two mutually exclusive projects A and

B 2 3 1 YEARS PROJECT A CF -$15,000 $10,000 $8.000 $6,000

A company is considering a two mutually exclusive projects A and B 2 3 1 YEARS PROJECT A CF -$15,000 $10,000 $8.000 $6,000 WACC -9% 2 3 4 5 YEARS 0 PROJECT B $10,000 $5,000 $4,000 -$15.000 $3,000 $2,000 CF WACC = 9% Which of the following statements is true? (you can round to the nearest number) * his O NPV of A exceeds NPV of B by $644 O EAA of B lowers EAA of A by $930 O Project B should not be selected based on EAA O All of the above None of the above

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