Question: Given the data on two mutually exclusive projects in the table below, which project should you accept? Cash flows: Project (A)(31,000) 10,000 17,000 22,000 Cash
Given the data on two mutually exclusive projects in the table below, which project should you accept? Cash flows: Project (A)(31,000) 10,000 17,000 22,000 Cash flows: Project (B) (25,000) 15,000 14,000 11,000 Hurdle rate-| 8% NPV (A)-$10,298 RR (A-I 23.35%) IRR (B) | 29.45% 1 1 Neither project is acceptable. Project B because it has a greater IRR Project B because of its NPV Project A because its has the greater NPV Given the data on two mutually exclusive projects in the table below, which project should you accept? Cash flows: Project (A)(31,000) 10,000 17,000 22,000 Cash flows: Project (B) (25,000) 15,000 14,000 11,000 Hurdle rate-| 8% NPV (A)-$10,298 RR (A-I 23.35%) IRR (B) | 29.45% 1 1 Neither project is acceptable. Project B because it has a greater IRR Project B because of its NPV Project A because its has the greater NPV
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