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

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 1 Project A -580,000 290,000 290,000 150,000 150,000 2 3 Project B -580,000 130,000 130,000 230.000 230,000 230.000 115,000 4 5 6 O Both projects should be accepted because both have a positive NPV (and EAA). O Project B should be accepted because it has the highest EAA. O Project B should be accepted because it has the highest NPV. O Project A should be accepted because it has the highest EAA. O Project A should be accepted because it has the highest NPV

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