Question: Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a three-year project that has an initial after-tax cost of $80,000 and afer-tax cash

 Bigbox, Inc. is considering two, mutually exclusive projects. Project A is

Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a three-year project that has an initial after-tax cost of $80,000 and afer-tax cash inflows of $40,000 in year 1, $38,400 in year 2, and $25,600 in year 3. Project B has an aftertax cost of $44,000 and future after-tax cash inflows of $41,419 in year 1 and $14,080 in year 2. If Bigbox uses the net present value method and has a discount rate of 4%, which project should they choose? O Choose either A or B but not both O Choose project A O Choose project B O Choose both projects. ( You cannot determine which project is better since they have unequal lives. 19

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