Question: Alice is considering two mutually exclusive projects. Project A has an initial cost of $56,450.00. The cash inflows of project A are $35,000.00,$26,400.00, and $10,250.00

Alice is considering two mutually exclusive projects. Project A has an initial cost of $56,450.00. The cash inflows of project A are $35,000.00,$26,400.00, and $10,250.00 over the next three years, respectively. Project B has an initial cost of $87,900.00. The cash inflows for project B are $43,000.00,$65,000.00, and $0.00 over the next three years, respectively. The required rate of return is 12.5% for project A and 11% for project B. You should accept Project because its NPV is greater than that of the other project. a) A;$924.23 b) B;$901.81 c) A;$866.16 d) A;$921.53 e) B;$874.92

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