Question: A company is considering two separate mutually exclusive projects A and B Project A requires an initial investment of $100.000 and is expected to generate
A company is considering two separate mutually exclusive projects A and B Project A requires an initial investment of $100.000 and is expected to generate after-tax cash flows of $15,000 per year forever. Project B requires an initial Investment of $150.000 and is expected to generate after-tax cash flows of $18,000 per year forever. Which of the following statement is correct? O a. Select Project A when the discount rate is 4% O b. Select Project A when the discount rate is 5% O c. Select Project A when the discount rate is 16% O d. Select Project B when the discount rate is 11% O e. Select Project A when the discount rate is 13%
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