Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$364,000 -$52,000 46,000 25,000 68,000 22,000 68,000 21,500 458,000 17,500 L

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$364,000 -$52,000 46,000 25,000 68,000 22,000 68,000 21,500 458,000 17,500 L Whichever project you choose, if any, you require a return of 11 percent on your investment. If apply the NPV criterion, which investment will you choose? Why? NPV criterion implies we accept Project $84,051.57 and Project B has NPV(B) - $15,626.62. because Project A has NPV(A)

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