Question: C-11: Consider the following two mutually exclusive projects Year Project A Cash Flow Project B 01234 -$ 5 $ 6 $ SSSSSSS 1,000,000-$ 1,000,000

C-11: Consider the following two mutually exclusive projects Year Project A Cash

C-11: Consider the following two mutually exclusive projects Year Project A Cash Flow Project B 01234 -$ 5 $ 6 $ SSSSSSS 1,000,000-$ 1,000,000 $ 75,000 $ 335,000 $ 150,000 $ 300,000 Sr $ 300,000 $ 250,000 $ 500,000 $ 250,000 N 250,000 $ 150,000 250,000 $ 75,000 Select buttor ou require a 10% retum on your investment. a) b) ( If you apply the payback criterion, which investment will you choose? Why? If you apply the NPV criterion, which investment will you choose? Why? If you apply the IRR criterion, which investment will you choose? Why? d) Which project will you finally choose? Why?

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