Question: Consider the following two projects Project Year Yer1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

Consider the following two projects Project Year Yer1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow 50 30 Rate 0.14 0.14 -100 -73 60 30 N/A 30 40 30 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to OA. invest in project B, since lRRB RRA' OB. invest in project B, since NPVB2NPVA OC. invest in project A, since NPVA>0. O D. invest in project A, since NPVB NPV

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