Question: Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, which of the following statements is true?

Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, which of the following statements is true? Year 0 Project A 580,000 290,000 290,000 150,000 150,000 Project B 580,000 130,000 130,000 230,000 230,000 230,000 115,000 2 4 6 O Project B should be accepted because it has the highest NPV. Both projects should be accepted because both have a positive NPV (and EAA) O Project A should be accepted because it has the highest EAA. O Project A should be accepted because it has the highest NPV O Project B should be accepted because it has the highest EAA
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