Question: Consider the following two mutually exclusive projects: Cash Flows ($) Project C 0 C 1 C 2 C 3 A -50 +50 +60 0 B

Consider the following two mutually exclusive projects:

Cash Flows ($)

Project

C0

C1

C2

C3

A

-50

+50

+60

0

B

-50

0

0

+120

In what circumstances should the company accept project A?

Group of answer choices

Select Project B if the discount rate is less than 10.73%, the incremental IRR, otherwise select A

Select Project B if the discount rate is less than 6.13%, the incremental IRR, otherwise select A

Select Project B if the discount rate is less than 6.13%, the incremental IRR, otherwise select A

Select Project A if the discount rate is less than 10.73%, the incremental IRR, otherwise select B

Select Project A if the discount rate is less than 6.13%, the incremental IRR, otherwise select B

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