Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 426,000 $ 40,500 1 43,500 20,500 2 62,500 13,200

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 426,000 $ 40,500 1 43,500 20,500 2 62,500 13,200 3 79,500 19,100 4 541,000 15,900 The required return on these investments is 12 percent.

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