Question: Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year Project A Project B

  1. Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows:

Year

Project A

Project B

0

-$100,000

-$97,000

1

60,000

30,000

2

25,000

15,000

3

60,000

80,000

4

40,000

65,000

Discuss why this cost of capital that would make two projects have the same NPV value would influence your decision to take project A or project B based on NPV versus IRR method

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