Question: Consider the following two projects Project Year o Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow

 Consider the following two projects Project Year o Year 1 Year

Consider the following two projects Project Year o Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate - 100 40 50 60 NIA 0.16 B -73 30 30 30 30 0.16 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A Invest in project A since NPV, NPVA B. Invest in project A since NPVA> 0 OC. Invest in project B. since NPV > NPVA OD. Invest in project B. since IRR, IRRA

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