Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$170,000 -$18,000 30,000 10,000 20,000 20,000 80,000 3,000 300,000 3,000 Whichever

Consider the following two mutually exclusive projects: Year Cash Flow (A)

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$170,000 -$18,000 30,000 10,000 20,000 20,000 80,000 3,000 300,000 3,000 Whichever project you choose, if any, you require a 8% return on your investment. Criterion Project A Project B Which project is better? Payback period NPV Profitability Index Based on the above criterion, project should be chosen finally

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