Question: Consider the following two mutually exclusive projects. Whichever project you choose, if any, you require a return of 15 percent on your investment. Annual

Consider the following two mutually exclusive projects. Whichever project you choose, if

Consider the following two mutually exclusive projects. Whichever project you choose, if any, you require a return of 15 percent on your investment. Annual cash flows: A B Year 0 Year 1 Year 2 Year 3 Year 4 SSSSS $ (350,000) (50,000) $ 45,000 $ 24,000 $ 65,000 $ 65,000 $ 440,000 SSS $ 22,000 $ 19,500 $ 14,600 Required return 15% Complete the following analysis. Do not hard code values in your calculations. What is the NPV of each project? NPV of Project A NPV of Project B

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