Question: A firm is considering the following two mutually exclusive projects. The required return on each project is 14 per cent. Which project should be accepted

A firm is considering the following two mutually exclusive projects. The required return on each project is 14 per cent. Which project should be accepted and what is the best reason for that decision? OA. B. OC. O D. O E. Year 0 1 2 3 Project A -$46,000 $25,000 $18,000 $16,000 Project A because it Pays Back faster. (PBA = 2.1875 years) Project A because it has a positive Net Present Value. (NPVA = $579.78) Project B because it has the highest Net Present Value. (NPVB = $745.29) Project A because it has a positive Internal Rate of Return. (IRRA = 14.81%) Project B because it has the highest Internal Rate of Return. (IRRB = 14.82%) Project B -$46,000 $12,000 $19,000 $32,000

reaven for that decition

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