Consider the following two projects A and B Assume that the appropriate discount rate for each project is 20 Year CF for Project A CF for Project B 0 1 2 3 $100 70 80 90 $1,700 900 900 900 If projects A and B are mutually exclusive projects, which project(s) should you accept based on your best capital budgeting criteria Please explain your rationale

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Question: Consider the following two projects A and B. Assume that the appropriate discount rate for each project is 20%. Year CF for Project A CF

Consider the following two projects A and B. Assume that the appropriate discount rate for each project is 20%.

Year

CF for Project A

CF for Project B

- $100

- $1,700

900

If projects A and B are mutually exclusive projects, which project(s) should you accept based on your best capital budgeting criteria? Please explain your rationale.

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