Question: Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Project Cash Flow Cash Flow Cash Flow Cash Flow

Consider the following two projects: Year 0 Year 1 Year 2

Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A -100 40 50 60 N/A .15 B -73 30 30 30 .15 Which of the following statements is correct? (Hint: The two projects are NOT mutually exclusive.) 30 Select one: a. You should accept project A since its NPV0. O C. You should accept project B since its IRR 15%

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