Question: Consider two projects, Project and Project K, with the following end of year cash flows: At End of year cash flows 1 Year Project Project

Consider two projects, Project and Project K, with the following end of year cash flows: At End of year cash flows 1 Year Project Project K 0 -$20,000 $20,000 1 $11,000 $10,000 2 $9.000 $6,000 3 $6,000 $10,000 If these projects are mutually exclusive and have a cost of capital of 10 percent, the appropriate decision is to: (Hint: Should we use NPV or IRR in this situation?) o accept Project and reject Project K. O reject Project and accept Project K. O accept both projects. reject both projects

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