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 60 NA B - 73 30 30 30 30 .15 50 15 Which of the following statements is correct? O A. Your should accept project A since its NPV 0. OC. You should accept project B since its IRR 15%.

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